Are you curious to know if there is a tax break still possible under the new tax structure in Nigeria?

As Nigeria continues to reform its tax system to improve compliance, transparency, and revenue generation, many individuals and business owners are asking an important question: Is a tax break still possible under the new tax structure in Nigeria?

The short answer is yes — tax breaks are still available. However, the new tax structure has shifted from blanket exemptions to targeted, compliance-based incentives. This means taxpayers who understand the rules, plan properly, and remain compliant can still enjoy significant tax savings — legally.

In this article, we break down what tax breaks mean under the new tax structure, who qualifies, and how individuals and businesses can benefit.

You can check out Tax Filing Requirements Under the 2025 Tax Reform: What Every Nigerian Business Must Know.

What Does “Tax Break” Mean Under the New Tax Structure?

A tax break refers to any legal provision that reduces a taxpayer’s overall tax burden.

Under Nigeria’s new tax structure, tax breaks come in several forms, including:

• Tax exemptions
• Tax reliefs and deductions
• Reduced tax rates
• Capital allowances
• Tax incentives and holidays

Rather than eliminating tax breaks, the new system aims to reward compliance, encourage investment, and protect vulnerable taxpayers.

Tax Breaks Available for Individuals

1. Relief for Low-Income Earners

Under the revised tax framework, individuals earning below the minimum taxable threshold are exempt from paying Personal Income Tax (PIT).

This ensures that low-income earners are not unduly burdened by taxation.

For many salaried employees and small earners, this functions as a complete tax break.

2. Consolidated Relief Allowance (CRA)

Eligible taxpayers can still benefit from the Consolidated Relief Allowance, which reduces taxable income before tax rates are applied.

This allowance takes into account basic living expenses and helps lower overall tax liability.

3. Pension and Insurance Contributions

Contributions to:

• Approved pension schemes
• Life insurance policies

remain tax-deductible, meaning they reduce taxable income while encouraging long-term financial security.

Tax Breaks Available for Businesses

1. SME Tax Exemptions and Reduced Rates

Small and Medium Enterprises (SMEs) remain a major focus of Nigeria’s tax policy.

Depending on turnover thresholds:

• Small companies may enjoy full exemption from Company Income Tax (CIT)
• Medium-sized companies may benefit from reduced CIT rates

These provisions are designed to support business growth and job creation.

2. Capital Allowances

Companies can claim capital allowances on eligible assets such as:

• Plant and machinery
• Industrial buildings
• Equipment and technology assets

These allowances reduce assessable profits, resulting in lower tax payable.

3. Tax Incentives for Priority Sectors

Businesses operating in priority sectors may qualify for special tax breaks, including:

• Manufacturing
• Agriculture
• Export-oriented businesses
• Technology and digital services

These incentives may come as tax holidays, investment allowances, or reduced tax rates.

4. Research and Development (R&D) Incentives

Companies that invest in innovation and R&D may enjoy additional deductions and incentives, encouraging productivity and competitiveness.

Learn How to Reduce Taxable Income in a New Regime: Smart Strategies for Businesses and Individuals.

Are Tax Breaks Automatic Under the New Tax Structure?

No. One major change under the new tax structure is that tax breaks are no longer automatic.

To qualify, taxpayers must:

• Register properly with tax authorities
• File accurate and timely returns
• Maintain proper accounting records
• Use approved digital platforms (such as TaxPro Max)
• Comply with all relevant tax laws

Non-compliance can lead to penalties, loss of incentives, and denial of tax reliefs.

Common Mistakes That Make Taxpayers Lose Tax Breaks

Many individuals and businesses miss out on tax breaks due to:

• Late filing of tax returns
• Poor record-keeping
• Incorrect tax computations
• Failure to claim allowable deductions
• Not seeking professional advice

Avoiding these mistakes is critical under the new tax regime.

How to Maximize Tax Breaks Legally Under the New Tax Structure

To fully benefit from available tax breaks:

1. Plan your taxes early — don’t wait until filing deadlines
2. Structure your business properly
3. Claim all allowable reliefs and capital allowances
4. Stay updated on tax law changes
5. Work with professional tax consultants

This proactive approach ensures compliance while minimizing tax exposure.
You can check out Tax Planning Strategies for Nigerian SMEs: How to Legally Save Money in 2026.

How Skypro Professional Services Can Help

At Skypro Professional Services, we help individuals and businesses:

• Identify eligible tax breaks and incentives
• Structure operations for tax efficiency
• Prepare and file compliant tax returns
• Avoid penalties and unnecessary tax payments
• Plan for long-term tax savings under the new tax structure

Our goal is to help you pay only what you owe — nothing more.

Conclusion: Is a tax break still possible under the new tax structure in Nigeria?

Yes, tax breaks are still possible under the new tax structure in Nigeria — but they now depend on knowledge, planning, and compliance. The new system rewards responsible taxpayers who follow the rules and invest in growth.

If you want to take advantage of available tax breaks without risking penalties, expert guidance is essential.

Need help accessing tax breaks under the new tax structure?

Let Skypro Professional Services guide you.

📧 info@skyproservices.com.ng
📞 +2349064646156

Skypro Professional Services — Your trusted partner in tax compliance and planning.