Federal Govt releases guidelines for transition to new tax regime

Editor

The Federal Government has unveiled comprehensive guidelines to facilitate Nigeria’s transition to a new tax regime under the Tax Acts 2025.

The guidelines, issued by the Ministry of Finance, are intended to provide clarity for taxpayers, revenue agencies, tax consultants, and other stakeholders as the country implements sweeping tax reforms.

Speaking on the development, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the framework was designed to ensure a seamless transition while eliminating uncertainty for both taxpayers and tax administrators.

According to him, the guidelines are built on the principles of clarity, fairness and administrative certainty.

Oyedele explained that all tax liabilities, obligations and transactions relating to periods before January 1, 2026, will continue to be governed by the existing tax laws.

He added that ongoing assessments, audits, investigations, disputes and enforcement actions connected to the pre-2026 period would also be concluded under the repealed legal framework.

The minister further stated that tax returns relating to accounting periods ending before January 2026 would be filed under the old laws, while returns due from January 1, 2026, onward would be subject to the new tax regime.

He noted that the Tax Acts 2025 comprise four key pieces of legislation introduced as part of the government’s tax reform agenda: the Nigeria Revenue Service (Establishment) Act, the Nigeria Tax Act, the Nigeria Tax Administration Act, and the Joint Revenue Board (Establishment) Act.

The guidelines also reassure businesses currently benefiting from tax incentives, stating that all exemptions and incentives granted under previous laws will remain in effect until their approved expiration dates.

However, pending applications and new requests for tax incentives will be evaluated under the provisions of the new tax laws.

The government said the framework also addresses issues relating to income taxes, transaction taxes, development levies, and record-keeping requirements during the transition period, to ensure consistency and stability in tax administration.