Tax Term
What is Tax Exemption?
Income or transactions that are legally excluded from taxation.
Detailed Explanation
Under the Nigeria Tax Act 2025, certain types of income are fully exempt from tax. These include military salaries, approved pensions, and income below ₦800,000 annually.
Example
A soldier earning ₦3,000,000 salary pays ₦0 in personal income tax because military salaries are exempt.