The Federal Inland Revenue Service (FIRS) has announced a temporary shutdown of its information technology (IT) systems, affecting all applications and infrastructure.
According to a notice issued on Thursday, the downtime will run from Friday, November 28, to Sunday, November 30, 2025.
“The general public should note that there will be an FIRS IT services downtime,” the agency stated. “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 planned disruption is expected to support system upgrades as the tax authority prepares for upcoming regulatory changes that will take effect in 2026.
FIRS Webinar Clarifies New Corporate Income Tax Rules
The announcement follows a recent FIRS-hosted webinar titled “Income Taxes: Expected Changes in 2026 and How to Stay Compliant.”
During the session, officials explained significant updates to corporate income tax obligations, especially for small companies.
Small Companies: No Longer Exempt, but Taxed at 0%
Deputy Director at FIRS, Kehinde Kajesomo, clarified that from 2026, small companies will not pay corporate income tax, but they will now be required to compute their taxable income and file self-assessment returns.
According to Kajesomo:
“From 2026, small companies will pay tax, but at zero per cent. Before, they were exempt from tax, but now they are liable to tax, though at zero percent.”
This means companies must complete full tax computations and submit returns—even though their tax payable remains zero.
The shift highlights FIRS’s push for strengthened compliance, improved reporting, and up-to-date taxpayer records.
Key Changes You Should Know
1. Revised Definition of Small Companies
Under the updated rules, firms now qualify as small companies if they have:
- Annual turnover of up to N50 million, and
- Fixed assets not exceeding N250 million
These companies will pay zero percent tax, including on capital gains, a change from the previous 10% capital gains tax.
2. Minimum Effective Tax Rate Introduced
A new 15% minimum effective tax rate has been introduced for:
- Multinational enterprises (MNEs) with global turnover above €750 million
- Local companies with a turnover above N50 billion
Such companies will fall under the Additional Tax Rule (ATR) as outlined in Section 57 of the Nigerian Tax Act.
3. New 4% Development Levy
A Development Levy of 4% on accessible profits will replace multiple existing levies, including:
- Tertiary Education Tax
- IT Levy
- Police Trust Fund Levy
- NASENI Levy
This simplifies the levy structure and creates a uniform charge across qualifying companies.
Bottom Line
The FIRS IT system shutdown is part of broader preparation for Nigeria’s 2026 tax reforms. Small companies must now prepare for zero-percent tax filings, while large corporations face stricter minimum tax requirements and a new development levy. Businesses are encouraged to review the updated rules and ensure compliance ahead of the new tax year.
