What You Really Need to Know About the New Tax Rules (Explained Like I Would to My Siblings)

So, the government is shouting that this new tax law is for “low-income earners” and “small businesses,” right? They say if you earn ₦800k or less a year, you won’t pay tax.

But let’s be real — with the way inflation is biting in this country, even people they call “low-income” are already being pushed to hustle harder just to survive. In no time, your income will cross that ₦800k line, and suddenly, you’re in the tax net.

That means whether you like it or not, this law affects everybody.

1. No Free Ride Forever
   Even if you’re exempt today, once your income grows, you’ll pay. So, plan ahead instead of being shocked later.

2. Your Foreign Income Counts Too
   Money from YouTube, TikTok, Fiverr, Upwork, or even that auntie abroad sending you dollars — if you’re living here, it may be taxed here.

3. Small Business Relief Is There — But Know the Limits
   If your turnover is under ₦100m and your assets are below ₦250m, you get exemptions. But don’t assume it’s automatic — you still need to file properly.

4. Inflation Pushes Everyone Up
   With prices of food, transport, and rent, many people will quickly earn “above low-income” just by increasing their prices. That means more people will suddenly be taxable.

• Keep Records Like a Boss
  Don’t run your hustle on vibes. Write down your income, expenses, receipts, and invoices. This is your shield if tax officers come knocking.

• Separate Personal Money from Business Money
  Open a business account. Don’t mix your “rice money” with your business money. It helps you track profits clearly.

• Understand the Brackets
  If you know how much you earn and where you fall in the tax bands, you can plan smartly — no surprises.

• Use Legit Deductions
  The law allows you to deduct business expenses before calculating tax. Rent for your shop, cost of supplies, staff salaries — these can reduce your taxable profit if you keep receipts.

• Don’t Ignore Filing
  Even if you think you don’t owe tax, file your returns. That way, nobody can claim you’re evading.

• Think Long-Term Strategies
  As your business grows, start learning about structuring — registering your business, using company tax benefits, and even reinvesting profits to legally reduce what you owe.

Don’t let this new tax law catch you off guard. It’s not just about today’s income — it’s about where you’ll be tomorrow. Inflation will push your earnings up, and the government is waiting at that next level.

So, act smart: know the rules, keep good records, and use every legit strategy to maximize your money while still staying on the right side of the law.

Because at the end of the day, tax is not going away. The only question is — will you be ready when it comes for you?