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RESOURCES · LEGISLATION

Tax laws and regulations

Every charge the Service raises rests on a written instrument, and every one of those instruments is public. This page lists them, says what each governs, and points to the provisions that matter most to a taxpayer.

How to use this page

Tax law in Nigeria operates on three levels. The Constitution divides taxing power between the Federation and the States. Federal statutes — chiefly the Personal Income Tax Act and the Taxes and Levies (Approved List for Collection) Act — define what a State may charge and how. State laws and regulations then establish the Service, fix rates within the federal framework, and set the local procedure.

The single most useful document for a taxpayer disputing a charge is the Taxes and Levies (Approved List for Collection) Act. Part II of its Schedule lists, exhaustively, what a State Government may collect. If a charge is not on that list and not authorised by another statute, it is not lawful, whoever is demanding it.

The second most useful is the Personal Income Tax Act, which contains the reliefs, the bands, the filing obligations, the assessment procedure, the objection and appeal route and the penalties. Almost every question about personal tax in this State is answered somewhere in it.

Federal legislation

Instrument What it governs Provisions to know
Constitution of the Federal Republic of Nigeria 1999 (as amended) Division of taxing powers between the Federation and the States Second Schedule Part I item 59 and Part II items 7–8; s.24(f) — the duty to declare income and pay tax honestly
Personal Income Tax Act Cap P8 LFN 2004 (as amended by the Finance Acts) Taxation of individuals, families, communities, trustees and executors s.2 (imposition), s.10A (TIN), s.20 (deductions), s.33 (Consolidated Relief Allowance), s.41 (returns), s.54 (best of judgement), s.58 (objections), s.65–68 (assessments), s.70 (withholding), s.76 (interest), s.81–82 (PAYE), s.85 (tax clearance), s.94–97 (offences)
Taxes and Levies (Approved List for Collection) Act The closed list of taxes and levies each tier may collect Part I — federal; Part II — the 25 State taxes and levies; Part III — local government
Capital Gains Tax Act Cap C1 LFN 2004 Gains on the disposal of chargeable assets s.2 (administration by the relevant tax authority), s.3 (chargeable assets), s.28 (exemptions)
Stamp Duties Act Cap S8 LFN 2004 Duty on written instruments s.4(2) (State competence over instruments between individuals), s.22 (unstamped instruments inadmissible), Schedule (rates)
Companies Income Tax Act Cap C21 LFN 2004 Taxation of company profits — federal, for reference Relevant to a State only for the WHT boundary and for TCC enquiries
Federal Inland Revenue Service (Establishment) Act Establishment and powers of the FIRS Determines which taxpayers are federal rather than State
Pension Reform Act 2014 Pension contributions deductible before tax s.4 (8% employee contribution); s.10 (tax treatment)
National Housing Fund Act NHF contributions deductible before tax s.4 (2.5% of basic salary)
Nigeria Data Protection Act 2023 Processing of taxpayer personal data Lawful basis, data subject rights, obligations of a controller of major importance
National Road Traffic Regulations Vehicle registration, licensing, roadworthiness and driver licensing Registration, plate allocation, inspection intervals, licence categories
Finance Acts (annual) Amendments to the tax statutes Changes to PITA reliefs, thresholds and administration

State legislation and subsidiary instruments

Instrument What it governs Provisions to know
State Revenue Administration Law Establishment, powers and administration of the Service Establishment of the Board; exclusive right of collection; distraint; accredited agents; the Revenue Court
State Hotel Occupancy & Restaurant Consumption Law Consumption tax on hospitality Rate of 5%; collection agent obligations; remittance by the 20th; sealing powers
State Land Use Charge Law Consolidated property charge Assessment formula; use classifications; exemptions; the 30-day objection window; discounts and penalties
State Signage & Advertisement Law Outdoor advertising Permit requirement; levy by sign type; removal of unauthorised signage
State Environmental Protection Law Environmental levies and fines Sanitation levy; effluent discharge levy; EIA review; environmental offences
State Urban Planning Law Development control Building plan approval; street naming and numbering; penalties for building without approval
State Road Traffic Law Road traffic and vehicle offences in the State Impoundment; plate offences; hackney permits
State Markets Regulations Markets, stalls and lock-up shops Allocation; gazetted rents; prohibition of unauthorised collections
State Presumptive Tax Regulations Presumptive assessment of the informal sector The flat annual charge; instalment arrangements; qualifying categories
Annual State Appropriation Law Revenue estimates and cost of collection The revenue target by head against which the Service is measured
State Public Procurement Law Contractor registration and tendering TCC requirement before award and before final payment
Schedule of Approved Revenue Heads (gazetted annually) The rates in force for the year The authoritative list of codes, names and amounts

Where to read them

  • The Schedule of Approved Revenue Heads is published on this site and updated whenever a rate is gazetted.
  • Federal Acts are available from the National Assembly and in the Laws of the Federation of Nigeria 2004 with subsequent amendments.
  • State laws and regulations are published in the State Gazette and sold by the Government Printing Press at ₦5,000 a copy.
  • Certified true copies of a State instrument may be obtained from the Ministry of Justice.
  • Practice notes and circulars issued by the Board are published on this site under Resources.
  • Joint Tax Board decisions affecting inter-State practice are circulated to taxpayers by public notice.

When the law changes

Rates are reviewed annually by the Board’s Technical & Rates Committee and take effect only when gazetted. A rate that has not been gazetted is not in force, whatever any document says.

Changes are announced by public notice, published in the newsroom on this site, and communicated to registered taxpayers by SMS and email at least thirty days before they take effect.

See what the law allows us to charge

Every approved revenue head with its code, its amount and the instrument that authorises it.