You can use this to see exactly how the law is worded and what obligations it places on tenants / tax authorities.
Rent Relief under Section 30 of NTA, 2025
From the NTA, the relevant text reads:
> Section 30. (1) The chargeable income of an individual is the total income of that individual ascertained under section 28 of this Act, less eligible deductions.
(2) For the purposes of this section –
(a) “eligible deductions” include payments made by the individual in a year of assessment in respect of …
(vi) rent relief of 20% of annual rent paid, subject to a maximum of N500,000, whichever is lower, provided that the individual accurately declares the actual amount of rent paid and other relevant information as may be prescribed by the relevant tax authority;
…
(b) “total income” means total income as specified in section 28 of this Act.
Section 31. Deduction shall not be allowed under this Part to any person for a year of assessment, unless claimed in writing in such form as the relevant tax authority may prescribe.
Section 32. (1) The relevant tax authority may require a claimant to a deduction under section 30(2)(a) of this Act to produce such documentary evidence as may be necessary in support of any claim, and in the absence of such evidence, or where such evidence is inadequate, the relevant tax authority may refuse to allow the deduction or such part of the amount claimed.
(2) Notwithstanding any provision of this Part, where an individual fails to produce satisfactory documentary evidence in support of a claim under section 30(2)(a) of this Act, any objection to an assessment or, to any rate at which tax is to be deducted, shall be on the amount or additional amount of the deduction as appropriate.
The Act eliminates the “Consolidated Relief Allowance (CRA)” and replaces it with this rent-based relief.
The rent relief is 20% of annual rent paid, subject to a maximum cap of ₦500,000 (i.e. whichever is lower).
An individual must declare the actual rent amount paid, and may be required to submit “other relevant information as may be prescribed by the relevant tax authority.”
The deduction is not automatic it must be claimed in writing, using a format prescribed by the relevant tax authority (e.g. FIRS, state revenue services).
The tax authority may demand documentary evidence (receipts, lease, proof of payment) to verify claims. If evidence is inadequate, the deduction (or part of it) may be refused.
If a taxpayer fails to produce satisfactory evidence, any objection to the tax assessment or deduction is limited to the amount or part of the deduction claimed (i.e. you can’t contest beyond what you claimed under this provision).
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