-
The Chartered Institute of Taxation of Nigeria (CITN) says bank account balances are not taxed under Nigeria’s new tax regime.
-
Only electronic transfers of ₦10,000 and above attract a ₦50 stamp duty, payable by the sender.
-
The new tax law exempts salary payments, low-value transfers, basic food, healthcare, education, and offers rent relief for tenants.
The Chartered Institute of Taxation of Nigeria (CITN) has dismissed widespread claims that Nigerians will be taxed on money held in their bank accounts, clarifying that only certain electronic transfers attract a ₦50 stamp duty under the new tax regime.
Speaking during an interview on ARISE News, the Chairman of the CITN Abuja District, Ben Enamudu, said misinformation surrounding the reforms has caused unnecessary fear among citizens. He stressed that Nigeria’s tax laws do not permit taxation of bank balances.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
According to him, the ₦50 charge applies strictly as a stamp duty on electronic transfers, not as a tax on deposits or account savings. Enamudu explained that transfers below ₦10,000, salary payments, and transfers within multiple accounts held in the same bank are fully exempt.
However, transfers between accounts in different banks, even if owned by the same individual, will attract the duty once the ₦10,000 threshold is reached.
He added that the new reforms have shifted the burden of the stamp duty entirely to the sender, unlike the previous arrangement where both sender and receiver shared the cost.
READ ALSO: DOPF 2025: Top Financial, Legal and Business Experts to Examine Nigeria’s New Tax Law in Asaba
Enamudu further noted that essential goods and services such as basic food items, medical care, pharmaceuticals, and education remain exempt from Value Added Tax (VAT). He also highlighted a new rent relief policy that allows tenants to claim 20 per cent of annual rent paid, capped at ₦500,000, as tax relief.
On income tax, the CITN chairman clarified that the widely referenced ₦800,000 threshold applies to taxable income, not total earnings. He explained that statutory deductions—such as pension contributions, health insurance, housing fund payments, and insurance premiums—are removed before taxable income is calculated. Individuals whose taxable income remains at or below ₦800,000 after deductions will not pay income tax.
Enamudu described the tax reforms as heavily pro-poor, noting that they are designed to protect low-income earners and expand the tax base gradually. He confirmed that the new tax law became effective on January 4, 2026, and is currently in a transitional implementation phase.
