Nigerian Town Planners Prepare for Implementation of New Tax Act

Advisory on Compliance with the Nigerian Tax Act

Town planners in Nigeria have been urged to prepare for the implementation of the Nigerian Tax Act 2025, which poses new compliance requirements for their consultancy services. At the 2026 Annual General Meeting of the Association of Town Planning Consultants in Nigeria (ATOPCON) held in Lagos, Avtax Administrator Mrs. Olufunlola Olaitan Adediran emphasized the importance of understanding the new tax law’s provisions, obligations, and available incentives.

Adediran highlighted that taxable activities for town planners include preparing layout plans, conducting environmental impact assessments, and engaging in urban renewal projects. She stressed the necessity for professionals to maintain detailed records of transactions and ensure appropriate tax payments to the government.

The administrator noted that town planning firms incorporated as limited liability companies are subject to Companies Income Tax (CIT), with rates varying based on the company size. However, small-sized practices with annual turnovers below N100 million are fully exempt from CIT under Section 56 of the Nigerian Tax Act 2025.

Understanding Tax Obligations and Opportunities

During her presentation, Adediran explained that many town planners deal with land instruments and government contracts, which may carry stamp duty exemptions under Section 184 of the new tax law. She warned against conflating personal and organizational income, advising that clear distinctions could prevent unnecessary tax liabilities.

The need for proactive tax planning was underscored, as it can help firms reduce their effective tax rates while remaining compliant. Adediran also pointed out that the reform introduces protections for non-residents and Nigerians earning income abroad, while establishing clear obligations for those with Nigerian-sourced income.

Significant incentives are available, including exemptions for small companies and economic development tax incentives, which present opportunities for town planners who engage actively with the new framework.

Professional Development and Collaboration

Bello Lateef Akinwale, Chairman of ATOPCON’s Lagos branch, stated that the chapter’s focus on the new tax reform is crucial, as it significantly affects professionals in the field. He emphasized the importance of understanding the law’s implications on their work and encouraged members to pursue ongoing training to enhance their skills.

Waheed Kadiri, the past president of ATOPCON, remarked on the necessity of adapting to changing policies to maintain a competitive edge in the profession. He noted that consulting firms must be resilient against fluctuations in tax contributions and should focus on sustainable practices.

Kadiri called for addressing issues such as underpricing and the need for stronger collaboration among professionals. He urged members to embrace innovation, enhance technical capabilities, and engage in collective responsibility to advance the field of town planning.

Frequently Asked Questions

What is the Nigerian Tax Act 2025?

The Nigerian Tax Act 2025 outlines new tax obligations and incentives for businesses, including town planning firms.

How does the new tax law affect town planners?

Town planners must comply with new tax regulations, including maintaining detailed transaction records and understanding taxable activities.

Are small town planning firms exempt from taxes?

Yes, small-sized town planning firms with annual turnovers below N100 million are exempt from Companies Income Tax under the new law.

What opportunities does the new tax act provide?

The act offers incentives such as tax exemptions for small companies and protections for non-residents with foreign income.

Why is ongoing professional training important for town planners?

Ongoing training helps town planners stay updated on legal changes and enhances their skills in a competitive market.