Nigeria Introduces Separate Annual Tax Incentive Return for Eligible Businesses

Nigeria’s Tax Administration Act 2025 introduces an extra filing obligation for businesses that benefit from specific tax incentives. Alongside their normal annual tax return, affected taxpayers must submit an Annual Tax Incentive Return to disclose the reliefs they receive. This return does not replace the regular income tax return. It applies where a business enjoys an incentive that is not generally available to all taxpayers, including relevant incentives under the Nigeria Tax Act 2025. The aim is to help tax authorities track who receives tax holidays, exemptions and other targeted reliefs, as well as the revenue government gives up through them. Businesses should keep approval letters, agreements, calculations and other documents showing the incentive received, their eligibility and its effect on their tax position. Small businesses are not automatically required to file the new return. The key question is whether the business benefits from a specific tax incentive. If it does, proper records will be important during compliance reviews, audits or any additional tax assessment.

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