On 26 June 2025, Nigeria enacted several new tax laws, including the Nigeria Tax Act, which introduces significant changes to personal income tax. These amendments affect tax rates, allowances, and the definition of residency for payroll purposes, effective from 1 January 2026.
Legislative summary of changes
Introduction of rent relief allowance – Section 30
- A new rent relief allowance of 20% of annual rent paid, capped at NGN 500,000 per annum is introduced.
- Taxpayers must disclose accurate rent information to claim this relief.
Additional information and resources
- To access the official publication, please click:
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The Deel Local Payroll Team