Nigeria’s new tax regime, driven by the Nigeria Tax Administration Act (NTAA) 2025, is set to impact citizens from January 2026. With self-assessment now mandatory, understanding your tax obligations is crucial. To help navigate this change, a Twitter Spaces event hosted by [Organization Name] featured experts discussing key aspects:
* **Self-Assessment:** The biggest shift is the responsibility of declaring income and filing taxes directly. This empowers citizens to be aware of their financial lives.
* **TIN as Essential ID:** A Tax Identification Number (TIN) is non-negotiable, helping connect finances to a legitimate profile within the tax system. Bank accounts without a TIN won’t be blocked but registering it ensures you benefit from various opportunities like loans and government contracts.
* **Understanding Your Taxes:** Understanding different types of taxes (Personal Income Tax for individuals; Company Income Tax for businesses) and their application is crucial to avoid costly mistakes.
* **Record Keeping Matters:** Accurate record-keeping is vital to maximize deductions and ensure proper tax compliance.
* **Maximizing Deductions:** From retirement savings contributions to business expenses, maximizing deductions becomes a key strategy in reducing taxable income.
* **Legal Ways of Reducing Tax Liability:** Experts recommend seeking professional advice for businesses exceeding N50 million annually.
This new tax regime encourages financial responsibility and proactive engagement with taxes. By understanding your obligations, you can ensure compliance and benefit from the new system effectively.