Financial analyst, Kalu Aja, has mentioned that cash getting into a bank account isn’t mechanically taxed, opposite to widespread perception.
Aja made the touch upon Nairametrics’ X area on Thursday, with the subject “How the brand new tax legislation impacts your pay, enterprise and each day spending.
The clarification follows rising public issues round Nigeria’s new tax framework that took impact on January 1, 2026.
What Kalu Aja is saying
Talking on the brand new tax reforms, Aja defined that solely revenue is taxable, not each influx, and that correct tax submitting is the important thing authorized safeguard for people and small companies.
Addressing fears that bank deposits could be taxed instantly, Aja mentioned the brand new tax legislation doesn’t goal inflows, however fairly revenue earned by taxpayers.
“Neglect about making an attempt to say if cash has come into your account. No, if it has are available in as revenue, it’s taxable,” he mentioned.
In accordance with him, the tax legislation broadly defines revenue to incorporate salaries, enterprise earnings, curiosity, digital earnings, and different positive aspects, significantly for people and small and medium-sized enterprises (SMEs).
“Actually, any revenue that you simply make… any revenue actually that comes into your account as a taxpayer particular person is taxable,” Aja defined.
What is not taxable revenue
Aja was emphatic that a number of forms of inflows are explicitly not thought-about revenue and subsequently not taxable, together with:
- Presents
- Inheritance
- Loans
- Life insurance coverage payouts
“If I borrow cash from a bank, the cash coming into my account… is a mortgage. So it’s not revenue,” he mentioned.
He added that presents, even when substantial, don’t entice tax legal responsibility.
“If somebody sends me cash as a present, that isn’t revenue to me, and I can’t embrace it as taxable revenue,” Aja famous.
Why submitting taxes is now vital
Aja warned that the largest danger below the brand new tax legislation is failure to file, not the act of receiving cash.
Below the revised framework, automated reliefs beforehand granted to taxpayers have been eliminated, putting duty squarely on people to declare their revenue and exemptions.
“They’ve modified the construction. It places the onus on you, the taxpayer, to exit and purchase exemptions. In any other case, you expose that revenue to taxation,” he mentioned.
He defined that previously, taxpayers mechanically acquired 20% aid plus N200,000, whether or not or not they filed returns. That provision not applies.
How tax authorities use bank knowledge
In accordance with Aja, tax authorities might even see cash flowing into bank accounts, however can’t tax it mechanically or withdraw funds arbitrarily.
“They don’t tax influx. They wish to tax revenue,” he mentioned.
He defined that submitting creates the authorized foundation for taxpayers to clarify the supply of funds.
“While you file, that’s after they can resolve in the event that they agree along with your submitting or problem it,” he mentioned.
With out submitting, nevertheless, tax authorities could assume inflows are revenue.
“If you happen to don’t file, the tax man will say, ‘We noticed this cash are available in, we assume it’s revenue, and we wish you to pay tax,” Aja warned.
No automated account deductions with out due course of
Aja additionally dismissed fears of direct deductions from bank accounts with out discover or due course of.
“They can not go into your account and take funds earlier than you could have filed,” he mentioned.
He added that even after submitting, enforcement actions would require authorized backing.
“They can not try this until they’ve a courtroom order,” Aja said.
Key takeaway for taxpayers
Summarising the reforms, Aja mentioned the brand new tax legislation doesn’t introduce new private taxes however tightens compliance by eliminating automated reliefs and rising reliance on correct self-reporting.
“Something that comes into your account, aside from presents, inheritance, insurance coverage, and loans, is revenue. Submitting is what protects you,” he concluded.
What you must know
- Earlier within the week, tax professional and Accomplice at PwC Nigeria, Kenneth Erikume, referred to as on finance groups and companies to urgently automate key compliance processes to keep away from expensive penalties below Nigeria’s new tax regime.
- Erikume gave the recommendation whereas talking at FirstBank’s Nigeria Financial Outlook 2026, warning that the brand new tax legal guidelines impose vital penalties for errors that ought to not be left to handbook processes.
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