The Federal Inland Revenue Service (FIRS) has announced a planned downtime of its information technology (IT) systems, affecting all platforms and digital infrastructure.
In a notice released on Thursday, the tax authority confirmed that the shutdown will run from Friday, November 28, through Sunday, November 30, 2025.
“There will be an FIRS IT services downtime,” the agency said. “The shutdown of applications and IT infrastructure will commence on 28th November and end on 30th November, 2025. We apologise for any inconvenience this may cause.”
The agency is expected to use the outage to upgrade its systems in preparation for the sweeping tax changes coming into effect in 2026.
FIRS Webinar Highlights Key Updates to Corporate Tax Obligations
The notice comes shortly after FIRS hosted a webinar titled “Income Taxes: Expected Changes in 2026 and How to Stay Compliant,” designed to clarify upcoming adjustments to corporate income tax requirements.
During the session, FIRS officials explained significant changes affecting both small and large companies.
Small Businesses: Required to File Returns Despite Zero Tax
FIRS Deputy Director Kehinde Kajesomo noted that beginning in 2026, small companies will still be responsible for preparing their taxable income and submitting self-assessment returns, even though their corporate income tax rate will be zero percent.
Kajesomo explained: “From 2026, small companies will pay tax, but at zero per cent. Previously, they were exempt from tax, but now they are liable, although the rate is zero.”
This shift reflects the agency’s push for improved documentation, compliance, and financial reporting.
Important Tax Changes to Note
1. Updated Small Company Criteria
Under the revised framework, a company is classified as a small business if it has:
- Annual revenue not exceeding N50 million
- Fixed assets valued at N250 million or below
These small firms will now pay zero percent corporate income tax, including zero percent on capital gains, replacing the former 10% capital gains tax requirement.
2. Introduction of a 15% Minimum Effective Tax Rate
A new minimum effective tax rate of 15% has been established for:
- Multinational enterprises (MNEs) with global revenues above €750 million
- Domestic companies generating more than N50 billion in annual turnover
These organisations will be assessed under the Additional Tax Rule (ATR) as provided in Section 57 of the Nigerian Tax Act.
3. New 4% Development Levy
A 4% Development Levy on accessible profits will replace several existing levies, including:
- Tertiary Education Tax
- IT Levy
- Police Trust Fund Levy
- NASENI Levy
This change consolidates multiple charges into a single, uniform levy for qualifying businesses.
Conclusion
The scheduled FIRS IT downtime forms part of preparations for Nigeria’s far-reaching tax reforms set to start in 2026. Small companies will now participate fully in the tax filing process despite paying zero tax, while larger entities will face stricter minimum tax obligations and a unified development levy.
Businesses are encouraged to familiarise themselves with the new regulations and ensure timely compliance ahead of the new tax year.
