FG Releases List Of Property Exempted from Tax, Sends Message to Landlords, Developers
- The Nigeria Tax Reform bills are currently in the final legislative stages and will soon be passed into law
- The bill introduces major changes to Nigeria's tax laws for real estate, including exemptions for some groups of properties
- Tax committee chairman, Taiwo Oyedele, has listed out the major changes made and sent a message to developers
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
As part of the latest reforms contained in the Tax Reform Bills currently before the National Assembly, major changes have been made to taxing of properties.
The first major change is that properties with rent above N10 million will be required to pay stamp duties, while properties with rents below N10 million will be exempted from stamp duties.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed that this is contained in the new tax bill.
Source: Twitter
Speaking at the Building and Construction Industry Forum, with the theme “Nigeria’s Tax Reforms and the Building and Construction Industry: Implications and Opportunities”, Oyedele explained that the new tax bill brings clarity into property taxation to avoid debates.
He said;
“So, if you’re paying rent, which is what many people will do because they don’t own a house, you won’t have to pay stamp duties unless you’re a rich person who is paying a lot. It’s not like we are punishing rich people; it’s just that they have a better ability to pay.”
FG lists exemptions on property tax
Oyedele added that the new bill also exempts sale of dwelling house from capital gains tax. This means that when a property owner sells the house in which he lives in, no capital gains tax will be paid on the proceeds.
The forum, which took place in Abuja, was organized by the Council of Registered Builders of Nigeria and the Housing Development Advocacy Network, the PUNCH reports.
Speaking to the builders, Oyedele revealed too that withholding tax on constructions has also been reduced to a maximum of 2%, to reduce burden on developers.
Recall that the government had promised to cancel over 50 taxes in the Tax reforms.
Housing developers ask for tax relief
In a recent report, a group of housing developers in Nigeria asked the federal government to include tax reliefs for them in the Tax Bill.
According to them, the demand for affordable housing is high, and incentives will be required to attract more investors into social housing.
The developers explained how the tax credits to the sector can translate to lower rents, which would benefit Nigerians.
Also speaking at the builders forum, the Executive Director of the Housing Development Advocacy Network, Festus Adebayo, urged the tax committee to consider incentives and tax rebates to encourage developers to invest in low-cost housing.
Source: Getty Images
Adebayo noted that the rents and fees paid by the estate developers does not encourage them to invest in low-cost housing, and this generally translates to higher cost of housing.
Lagos state moves to double tax revenue
In related news by Legit.ng, tax reform chairman, Taiwo Oyedele, identified ways that Lagos state could double its tax revenues.
Lagos state had set a tax revenue of N2.79 trillion for 2025, but Oyedele insisted that this was not reflective of the state's GDP.
He identified many revenue gaps and urged the state government to take bold steps to close the gaps.
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