Filing season in 2026 will come with tighter scrutiny as new provisions under the Nigeria Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA) reshape how companies calculate liabilities, submit returns, and maintain documentation.

For businesses, compliance can no longer rely on legacy bookkeeping practices. Here are five key provisions shaping corporate tax filings in 2026.

1. 15% Minimum Effective Tax Rate and Top-Up Tax

Section 57(1)(a) of the NTA introduces a minimum effective tax rate of 15 percent for certain large domestic companies and multinational enterprises.

If a company’s effective tax rate falls below 15 percent due to incentives or capital allowances, it must pay a top-up tax.

Section 57(2) applies to:

• Companies with ₦50 billion or more in turnover

• Multinational groups with aggregate turnover of £750 million or equivalent

Covered taxes include:

• Company Income Tax

• Petroleum Profits Tax

• Hydrocarbon Taxes

• 4% Development Levy

• Priority Sector Tax Credits

The rate is measured against net income in audited financial statements, excluding franked investment income and unrealised gains or losses.

Importantly, Section 6(3) extends the rule to foreign subsidiaries. If a non-resident subsidiary pays less than 15 percent tax abroad, the Nigerian parent company must settle the difference locally.

What this means:
Businesses must maintain clear records of profits, deductions, tax payments, and subsidiary contributions to demonstrate compliance and reduce audit risks.

2. Monthly Reporting and Digital Compliance

Under Sections 18, 20, and 21 of the NTAA, companies must now file monthly returns for specific revenue types, including:

• Royalties

• Activities of non-resident companies

• Certain sector-specific revenues

The reforms also expand digital reporting obligations.

Impact on businesses:
Companies in petroleum, mining, shipping, fintech, and foreign-linked operations must maintain detailed monthly records of cash flows and revenue streams. Electronic documentation that is easily retrievable will be critical.

3. Capital Gains Now Aligned with Company Income Tax

Capital gains from asset disposals are now aligned more closely with corporate income tax provisions.

This affects companies disposing of:

• Land and property

• Shares and securities

• Other capital assets

Businesses must retain documentation on acquisition cost, improvement expenses, incidental costs, and sale proceeds to properly compute gains.

Proper valuation worksheets and audit trails will be essential to support exemptions or relief claims.

4. Digital and Virtual Assets Brought into Tax Net

The NTA now recognises digital and virtual assets as taxable sources of income and gains.

This includes:

• Digital service transactions

• Virtual asset service providers

• Cryptocurrency-related activities

• Online revenue streams

Companies operating in fintech, e-commerce, cloud services, and digital payments must maintain detailed transaction logs showing:

• Dates

• Counterparties

• Transaction values

An integrated electronic filing system will simplify reporting and reduce compliance gaps.

5. Stricter VAT Documentation Rules

While VAT remains at 7.5 percent, the updated framework allows businesses to recover input VAT on services and capital assets.

However, stricter documentation requirements now apply.

To claim input VAT, companies must retain:

• Valid VAT invoices

• Contracts

• Payment vouchers

• Proof of payment

Zero-rating for exports and essential goods requires additional documentation such as:

• Bills of lading

• Export contracts

• Statutory declarations

• Evidence goods left Nigeria

Properly organised records — digital or physical — will reduce disputes with tax authorities.

Compliance in 2026: No Room for Old Assumptions

Preparing tax returns in 2026 demands more than traditional bookkeeping. Companies must proactively review:

• Effective tax rate calculations

• Monthly reporting systems

• Subsidiary tax structures

• VAT input documentation

• Digital asset transaction logs

Businesses that adjust early to the evolving framework under the Nigeria Tax Act and Nigeria Tax Administration Act will be better positioned to file accurate returns and withstand regulatory scrutiny.

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In a statement, the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, said the ministry held a high-level meeting in March 2025. The meeting aimed to address fears from key industry groups. These include the Oil Producers Trade Section (OPTS), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA).

These groups had raised concerns as early as December 2024. Their main worry was the reclassification of large private companies as PIEs. Under the new law, these companies must pay annual dues ranging from 0.02% to 0.05% of turnover. There is no upper limit. Meanwhile, publicly listed firms pay a fixed ₦25 million, no matter their size.

In March 2025, the ministry held a public consultation to discuss these issues. As a result, two key actions were taken. First, an administrative pause was placed on the new dues. Second, a Technical Working Group was set up to study the impact.

This group included NECA, MAN, ALTON, NACCIMA, PEBEC, CAC, SEC, and the Financial Reporting Council (FRC). They met six times in three weeks. They presented their report to the minister on April 17, 2025.

Dr. Oduwole then briefed President Bola Tinubu. She shared private sector concerns and recommended keeping the pause. The government agreed to maintain this pause for now.

To give immediate relief, the minister directed FRC to cap annual dues for private PIEs at ₦25 million. This matches the cap for listed companies.

This move creates a fair and stable environment for companies. It shows the government’s focus on transparency, fairness, and investor confidence.

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