Nigeria's Federal Government (FG) recently launched significant tax reforms, including new incentives for businesses starting in 2026, offering 0% Company Income Tax (CIT) for small businesses (under ₦100m turnover), VAT exemptions/zero-rating on essentials, and new reliefs like 50% deductions for hiring low-income workers or increasing salaries, aiming to boost economic growth, support SMEs, and simplify the tax system.
Key Tax Incentives & Reliefs:
For Small Businesses: 0% CIT for companies with turnover below ₦100m and assets under ₦250m; exemption from VAT and withholding tax.
For Employees: 50% additional tax deduction for salary increases or wage awards for low-income staff.
For Job Creation: 50% deduction on salaries for new employees retained for at least three years.
For Agriculture: A 5-year tax holiday for agricultural enterprises.
For Startups: Full exemptions for eligible startups and tax relief for investors in them.
VAT Relief: Zero-rating or exemptions for basic foods, education, healthcare, pharmaceuticals, and rent.