Calculate Your Company Income Tax (CIT) Under the Latest Nigerian Tax Reform Acts
Our calculator reflects the most recent legislative changes from the Nigeria Tax Act (NTA) and Nigeria Tax Administration Act (NTAA), ensuring compliance and accuracy for businesses operating in Nigeria.
Important: Nigerian Tax Reform Acts 2025
The Nigeria Tax Act (NTA) and Nigeria Tax Administration Act (NTAA) were signed into law in June 2025. These significant reforms are indicated to take effect no earlier than January 1, 2026. Our calculator is updated to reflect these upcoming changes.
Nigerian Company Income Tax Calculator
Company Details
Determines company size (Small ≤ ₦25M, Medium ≤ ₦100M, Large > ₦100M) and minimum tax base.
Profit after allowable deductions, before CIT/TET. Base for CIT (if > Min Tax) & TET. Enter 0 or negative for loss.
Determined Company Size:
large
CIT Rate: 30%
Check if company qualifies for exemption (e.g., first 4 years, agriculture). Small companies are automatically exempt.
Enter company details and click 'Calculate Tax' to see the estimated tax liability.
Key Tax Reforms Affecting Your Business
Revised Small Company Exemption Threshold
Small companies are now exempt from Companies Income Tax (CIT), Capital Gains Tax (CGT), and the newly introduced Development Levy. A small company is now defined as one with an annual gross turnover of NGN100 million (increased from NGN25 million) and below, and total fixed assets not exceeding NGN250 million.
Introduction of Development Levy (4%)
Nigerian companies, with the exception of small companies, will now be subject to a 'Development Levy' calculated at 4% of their assessable profits. This new levy consolidates the Tertiary Education Tax (TET), Information Technology Levy (IT), National Agency for Science and Engineering Infrastructure (NASENI) levy, and the Police Trust Fund (PTF) levy.
Minimum Effective Tax Rate (METR) for Large Entities
Multinational groups with an aggregate group turnover of EUR750 million or more, or those with an annual turnover of NGN50 billion or more, will be subject to a minimum effective tax rate (ETR) of 15% on their 'Net Income'.
New Economic Development Incentive (EDI)
The 'pioneer' tax holiday incentive has been replaced by the 'Economic Development Incentive' (EDI). This new incentive offers a tax credit of 5% per annum for 5 years on qualifying capital expenditure purchased by eligible companies within 5 years from their production date. Unused tax credits can be carried forward for an additional 5 years.
Changes to Free Zone Entities' Exemptions
Tax exemptions for Free Zone companies have been revised. While full tax exemption applies to exports or output used in goods or services eventually exported, or supplied to oil and gas companies, proportionate taxes will apply if more than 25% of the Free Zone company's sales are made to the customs territory. Furthermore, from January 1, 2028, the full profits of Free Zone entities will become subject to tax if they make any sales to the customs territory.
Increased Capital Gains Tax (CGT) Rate
The Capital Gains Tax (CGT) rate for companies has been increased from 10% to 30%, aligning it with the Companies Income Tax rate.
Company Income Tax Rates (Current 2025 / From 2026)
| Company Size | Turnover Threshold | CIT Rate | Additional Levies |
|---|---|---|---|
| Small | ≤ N100 million(Increased from N25M) | 0% | Exempt from Dev. Levy |
| Medium | N100M - N500M | 20% | 4% Development Levy |
| Large | > N500 million | 30% | 4% Development Levy |
* The Development Levy (4%) replaces TET (3%), IT Levy, NASENI Levy, and PTF Levy from January 1, 2026.
What You Need to Calculate Your CIT
Annual Gross Turnover
Total revenue before any deductions
Assessable Profits
Profits after allowable deductions
Qualifying Capital Expenditure
For EDI credit calculations
Key Facts About Nigerian CIT
Other Tax Calculators
Important Disclaimer:
This calculator provides estimates based on the Nigerian Tax Reform Acts ( Nigeria Tax Act and Nigeria Tax Administration Act) signed into law in June 2025, with an effective date no earlier than January 1, 2026. It does not account for specific industry incentives, capital allowances, detailed expense deductibility, Economic Development Incentive (EDI) credits, or other exemptions that may apply to your specific situation. Tax laws are subject to change and interpretation. Please consult with a qualified tax professional for accurate assessment and advice specific to your company.