Town Planning Professionals in Nigeria Are Advised to Adjust to New Tax . Town planning professionals in Nigeria have been urged to take proactive steps ahead of the implementation of the country’s new tax framework, as stakeholders warn that the evolving regime will significantly reshape compliance obligations across the consulting space.
The call was made during the 2026 Annual General Meeting of the Association of Town Planning Consultants of Nigeria (ATOPCON), Lagos State chapter, where tax experts and industry leaders discussed the implications of the Nigerian Tax Act, 2025, on professional services.
Understanding Tax Obligations Under the New Law
A tax administrator and guest speaker at the event, Mrs. Olufunlola Adediran, was reported to have advised practitioners to gain a clear understanding of the provisions of the new law, including their responsibilities, applicable taxes, and available incentives.
According to her presentation, a wide range of services offered by town planners now fall within the scope of taxable supplies.
These include:
- Preparation of layout and development plans
- Environmental impact assessments
- Urban renewal and regeneration projects
- Land subdivision and zoning services
- Regularisation processes
- Professional training and consultancy engagements
She noted that the tax authority expects both individuals and firms to maintain accurate financial records and meet filing obligations as required under the law.
Corporate Tax Rules and Small Business Reliefs
It was further explained that town planning firms registered as limited liability companies will be subject to Companies Income Tax (CIT) based on their profits.
However, the applicable rate depends on company size.
Small firms with turnover below the prescribed threshold are expected to benefit from exemptions under the new tax law, offering relief to many small and medium-sized practices operating in Nigeria.
Tax analysts say this provision aligns with broader fiscal reforms aimed at supporting smaller businesses while widening the tax base.
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Stamp Duties and Transaction-Based Taxes
The discussion also highlighted that town planning consultants frequently engage in transactions that may attract or qualify for stamp duty considerations.
These include land documentation, property transfers, and government-related contracts.
Some of these transactions may benefit from exemptions or reduced obligations under specific provisions of the law.
Experts emphasised the need for professionals to understand these nuances to avoid unnecessary tax exposure.
Separation of Personal and Business Income Critical
A key compliance issue raised during the session was the need for clear separation between personal income and business earnings.
Practitioners were cautioned that mixing both could lead to incorrect tax assessments and higher liabilities.
Maintaining distinct financial records, it was noted, is essential for accurate tax reporting and may help reduce overall tax burdens where properly managed.
Strict Compliance Timeline and Penalties
Speakers at the event reportedly stressed that the new tax regime introduces stricter compliance timelines.
Failure to meet filing deadlines or submit accurate returns may result in automatic penalties.
As a result, professionals were advised to adopt structured tax planning strategies to ensure timely compliance throughout the financial year.
Opportunities Within the New Tax Framework
Despite the stricter compliance environment, the reform was said to offer several opportunities for proactive businesses.
These include:
- Tax exemptions for qualifying small companies
- Incentives tied to economic development activities
- Expanded VAT input recovery provisions
- Clarified rules for non-resident and diaspora income
According to experts, firms that actively engage with the new system stand to benefit from reduced effective tax rates while remaining compliant.
Industry Leaders Call for Capacity Building and Innovation
The Chairman of ATOPCON Lagos was reported to have explained that the focus of the meeting was to help practitioners understand how the new tax law affects their operations and what steps are required to remain compliant.
He noted that taxation has become a critical issue affecting professionals across sectors, making it essential for town planners to stay informed.
Industry leaders also encouraged members to prioritise continuous learning and professional development.
Sustainability of Consulting Practice in a Changing Tax Environment
In his remarks, a senior figure in the association reportedly highlighted the importance of adapting to policy changes to ensure long-term sustainability.
He noted that consulting firms must evolve beyond short-term income generation and build structures that can withstand varying tax conditions.
The discussion also addressed challenges such as underpricing of services, weak collaboration among professionals, and the need for stronger industry standards.
Call for Professional Excellence and Collaboration
Stakeholders concluded by urging town planners to embrace innovation, strengthen technical expertise, and leverage emerging technologies in their practice.
They also called for improved collaboration across specialised areas within the profession to enhance service delivery and competitiveness.
Experts believe that aligning professional practices with the new tax framework will not only ensure compliance but also position town planning firms for growth in Nigeria’s evolving fiscal landscape.
