The Nigerian Tax Act 2025, set to take effect on January 1st, 2026, brings significant changes that freelancers, remote workers, and content creators need to be aware of. This comprehensive law merges previous tax statutes into a unified framework, making tax obligations clearer and enforcement easier.
One of the key updates is that digital assets and online earnings are now explicitly subject to taxation. This means that if you’re a freelancer or content creator making money online, you’re required to pay taxes on your income, regardless of the platforms you use.
For those working remotely and earning in foreign currencies, such as dollars or euros, the law indicates that these earnings are also taxable in Nigeria. As per section 12 of the Act, income gains or profits of any Nigerian resident are deemed accrued in Nigeria and are chargeable to tax.
Moreover, the law emphasizes self-assessment and a Pay-As-You-Earn (PAYE) system for income tax. Individuals must file their taxes from January 2026, with detailed records of their income and expenses to ensure compliance. It’s crucial for workers to keep accurate records to avoid scrutiny from tax authorities.
The government appears to be focusing on enforcement to ensure compliance, as many have historically evaded taxes. The rates for lower earners may be less burdensome, but record-keeping remains critical.
For those looking for a more detailed understanding, the full text of the law can be found here:
https://fiscalreforms.ng/
Overall, while these changes may present challenges for many, understanding and adapting to the new regulations will be essential in the upcoming years.
By Andrew Okiemute