Nigeria’s 2025 Tax Rules: When Businesses Must Disclose Tax Planning Arrangements

Nigeria’s Tax Administration Act 2025 introduces disclosure requirements for certain transactions or arrangements designed mainly to secure a tax advantage. A tax advantage may include reducing or delaying tax payments, increasing a relief or repayment, or avoiding a duty to deduct and remit tax. This does not mean all tax planning is prohibited. Businesses may still structure transactions lawfully and consider tax consequences. The key issue is whether obtaining the tax benefit is the arrangement’s principal purpose. The relevant tax authority can specify the information, format and deadline for disclosures. Late, incomplete or false disclosures may attract penalties. Businesses should therefore retain contracts, invoices, receipts and other records that demonstrate the commercial reasons for significant transactions. Freelancers and small businesses do not need to report every routine expense. However, they should keep clear documentation for major arrangements with significant tax implications.

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