Master Nigeria's
Tax Revolution

Under the 2026 Nigeria Tax Act, the first ₦800,000 of your annual income is taxed at 0%—completely tax-free. This is NOT a deduction; it's the first tax bracket. Example: If you earn ₦1.2M annually, after statutory deductions (pension, NHIS, NHF) your taxable income might be ₦1.15M. The first ₦800k is taxed at 0%, and only the remaining ₦350k is taxed at 15% (₦52,500 total tax). This replaces the old Consolidated Relief Allowance (CRA) formula which was more complex.

NO. Rent Relief is ONLY for people who actually pay rent and can prove it. You need: (1) A tenancy agreement showing rent amount, (2) Rent receipts or bank transfer proof, and (3) Landlord details. The relief is 20% of annual rent paid, capped at ₦500,000 maximum. If you pay ₦2.5M rent annually, 20% = ₦500k relief (the cap). If you pay ₦1M rent, 20% = ₦200k relief. Homeowners and rent-free occupants cannot claim this, but still benefit from the ₦800k tax-free threshold.

Crypto is now officially recognized as a SECURITY and taxed under progressive Personal Income Tax rates (15-25%), NOT the old flat 10% capital gains tax. Here's how: (1) Trading gains: When you sell crypto for profit, you pay progressive PIT. First ₦800k gains are tax-free. Example: Buy Bitcoin at ₦2.93M, sell at ₦5.86M = ₦2.93M gain. After ₦800k exemption, ₦2.13M taxed at 15% = ₦319,704 tax. (2) Mining & staking rewards: Taxed as ordinary income at your applicable rate. (3) Losses: Deductible from gains. (4) VAT: 7.5% on exchange fees only, not on the crypto itself. (5) Reporting: Must register with SIRS, file by March 31, keep detailed records (dates, prices, fees, wallets). Use SEC-licensed exchanges only (Quidax, Busha).

Penalties are SERIOUS and automatic: (1) Late PIT filing: ₦50,000 first offense, ₦100,000 repeat offenders, plus possible prosecution and travel restrictions. (2) Late CIT filing: ₦25,000 first month + ₦5,000 each additional month. (3) Late payment: 10% penalty + interest at commercial rates. (4) VAT non-registration: ₦50,000 first month + ₦25,000 each month after. (5) No TIN: Double withholding tax rate applied. (6) Crypto non-reporting: Up to ₦1M fine or 3 years imprisonment. (7) WHT not deducted: 10% penalty + interest. Filing deadline is March 31 for individuals, 6 months after year-end for companies. Use Nalo's automated reminders to never miss deadlines.

Nalo is built for Nigeria's hustle economy where most people have multiple income sources. Here's what we do: (1) Track everything: Salary (PAYE), freelancing (Upwork, Fiverr), crypto trading, rental income, business profits—all in one place. (2) Apply correct tax treatment: PAYE at source, freelance income with WHT credits, crypto at progressive rates, rental income properly categorized. (3) Aggregate automatically: Calculate total taxable income, apply ₦800k exemption, compute tax across all sources. (4) Claim all deductions: Rent relief, pension, NHIS, NHF, equipment costs, internet bills. (5) Generate compliant reports: One-click PIT return covering all income with proper documentation. (6) Track WHT credits: If clients deducted WHT, we track it and offset against your final tax bill. No manual spreadsheets needed.

It depends on your turnover. Here's the analysis: (1) Sole proprietorship: You pay progressive PIT (15-25% on income above ₦800k). No incorporation costs but higher tax rates at scale. (2) Small company (≤₦100M turnover + ≤₦250M assets): Pay 0% CIT, 0% CGT, 0% Development Levy. This is THE BEST option if you qualify. (3) Large company (>₦100M): Pay 30% CIT + 4% Development Levy = 34% total. Only worth it if you need limited liability or plan to raise investment. Break-even analysis: If earning ₦5M-₦100M annually, incorporation likely saves tax. If earning <₦5M, sole proprietorship is simpler. If earning >₦100M, compare 34% corporate rate vs 25% personal rate plus incorporation costs (₦50k-₦200k). Use Nalo's calculator to compare both scenarios with YOUR actual numbers before deciding.

If you overpaid through employer PAYE deductions, follow these steps: (1) File your annual PIT return by March 31 showing total income, all deductions (rent relief, pension, etc.), and total PAYE deducted by employer. (2) Nalo's system will calculate your actual tax liability and flag the overpayment amount. (3) Download the auto-generated refund request report from Nalo with all supporting documents. (4) Submit to your State Internal Revenue Service (SIRS) or FIRS if you're in FCT, military, police, or foreign service. (5) Follow up with the tax office—refunds typically take 90 days to 6+ months. (6) Provide bank details for direct deposit. Common overpayment causes: Employer didn't apply rent relief, calculated CRA wrong, didn't account for full pension contributions, applied wrong tax bands. File early (January-February) to get refunds faster. Nalo's reports include all documentation SIRS/FIRS needs to approve your refund quickly.