5 Deductions Nigerian Freelancers Miss Every Year
You're probably overpaying on taxes. Here are the legitimate business deductions most Nigerian freelancers don't know they can claim under NTA 2025.
You're Leaving Money on the Table
Most Nigerian freelancers either don't file taxes (risky) or file without claiming deductions (expensive). If you're in the second camp, you're literally giving away money.
Under Section 30 of the Nigeria Tax Act 2025, various expenses are deductible from your taxable income[^1]. Here are five deductions you're probably missing:
1. Home Office Expenses
If you work from home — and most freelancers do — a portion of your rent and utilities may be deductible as a business expense[^2].
How to calculate:
Example:
What you need: Keep your rent receipts and utility bills.
Note: This is separate from the Rent Relief (which is 20% of total rent, capped at ₦500,000). Home office deduction is based on business use percentage.
2. Internet and Data Costs
Your internet is a business expense. All of it, if you work from home and it's primarily for work.
Typical annual costs:
What you need: Bank statements showing payments, or receipts from your ISP.
3. Software and Subscriptions
Every tool you use for work is deductible[^3]:
What you need: Subscription receipts or credit card statements.
4. Equipment Depreciation
Your laptop, phone, camera, and other equipment can be depreciated over their useful life (typically 3-5 years for electronics)[^4].
Example: ₦600,000 MacBook Pro
Same applies to:
What you need: Purchase receipts for all equipment.
5. Professional Development
Investing in your skills? That's deductible:
Typical annual spend: ₦50,000 - ₦200,000
What you need: Course receipts, certificate records.
Bonus: Often Overlooked Deductions
How Much Could You Save?
Let's add up a typical freelancer's deductions:
At an 18% marginal tax rate (the bracket for ₦3-10M), that's approximately ₦178,000 saved in taxes.
The Key: Documentation
Deductions only work if you can prove them. You need:
This is exactly what TaxJeje helps you track throughout the year, so when filing time comes, everything is documented and ready.
What's NOT Deductible
Be careful — not everything can be deducted:
Start Tracking Today
Don't wait until March to figure out your deductions. Every expense you track now is money saved later.
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References
[^1]: Section 30, Nigeria Tax Act 2025 - Deductions Allowed
^2]: [PWC Nigeria - Individual Deductions
[^3]: Section 30(1)(a), NTA 2025 - Expenses wholly, exclusively and necessarily incurred
[^4]: Capital allowances under the Nigeria Tax Act 2025
^5]: [KPMG - Pension contributions remain deductible