Top 10 Changes in the New Tax bill and Why it matters.

1. Consolidation into a single Nigeria Tax Act (NTA 2025) most existing tax laws were repealed/merged and major tax rules consolidated into one Act to reduce contradictions and simplify compliance. This is the backbone of the reform. 

2. New tax administration architecture Nigeria Revenue Service (NRS) & Tax Administration Act creation of a single, stronger revenue service (NRS) and a separate Tax Administration Act that modernises powers, dispute resolution (advance rulings), and compliance processes. Expect more centralised enforcement and digital tax administration. 

3. Joint Revenue Board (JRB) for federal-state coordination a statutory Joint Revenue Board to align federal, state and local tax policy and administration, designed to reduce overlap and improve revenue sharing/coordination. 

4. New/changed tax thresholds and reliefs for individuals & SMEs revised personal income tax reliefs (including a zero-rate band) and higher SME thresholds (several analyses cite SME relief thresholds rising: e.g., 0% for very small incomes; small company turnover thresholds increased). This reduces burden on small taxpayers. (See Act + Big Four summaries.) 

5. VAT reform exemptions and base changes (and debate on rate) the Acts rework VAT bases/exemptions (clearer essential-item exemptions called out) and proposals to change the VAT rate were widely debated; consult the Acts for exact statutory rate and exempt lists as final wording is in the gazetteed Acts. 

6. Wider domestic tax residence & expanded scope for “Nigerian company” the definition of Nigerian company was broadened to capture entities effectively managed/controlled in Nigeria (to tax more multinational/remote-managed firms). Expect more situations where foreign entities will have Nigerian tax obligations. 

7. Minimum effective tax / global anti-base-erosion measures the reforms include provisions aligned with global minimum tax ideas (a minimum effective tax for large multinationals / multinational anti-avoidance rules), part of ensuring multinationals pay baseline tax in Nigeria. 

8. New rules on input VAT credit, excise on services and tighter FTZ rules clearer rules on VAT input credits, introduction/expansion of excise duties (including some services), and tightened tax exemptions for Free Trade Zones (FTZs). These will affect pricing and cashflow for affected sectors. 

9. Simplified/modernised dispute resolution & advance ruling framework the Tax Administration Act codifies advance rulings, streamlined objection/appeal procedures and more formal administrative guidance to reduce uncertainty for taxpayers. 

10. Focus on digitalisation, compliance and removing “nuisance”/overlapping taxes the reforms emphasise digital filing, electronic administration and the removal of small or duplicative local taxes (the stated policy aim is fewer, clearer taxes to boost compliance and revenue efficiency).