Companies income tax
The thresholds that decide whether you pay 0% or 30%, the levy that came with the reform, and the floor that applies to the largest companies.
Every figure on this page is read from the same configuration the calculators use — none of it is typed into the page. If a number here is wrong, the calculators are wrong too, and a changelog entry will record the correction.
Small-company thresholds
All the tests must pass. Fail any one and you are not a small company — there is no partial credit and, from 2026, no middle tier. Am I a small company? works through it.
| 2026 new regime | 2025 old regime | |
|---|---|---|
| Turnover capThis is the income-tax threshold. The VAT threshold is a different number — see the notice below. | ₦50,000,000 | ₦25,000,000 |
| Fixed-asset capNew in 2026. There was no fixed-asset test under the old regime. | ₦250,000,000 | No test |
| Professional services excluded from small statusA professional services firm is not a small company at any turnover. | Yes | No |
Rates
| 2026 new regime | 2025 old regime | |
|---|---|---|
| Small company | 0% | 0% |
| Medium companyThe 20% medium band was removed on 1 January 2026. A company that paid 20% now pays 30%. | Band abolished | 20% |
| Medium-company turnover ceiling | Band abolished | ₦100,000,000 |
| Large company | 30% | 30% |
CONFLICT SMALL_CO_THRESHOLD: NTA s.202 sets ₦50m for income tax; NTAA s.147 sets ₦100m for VAT. Both apply, to different taxes.
The cliff is real and there is no taper: at ₦50,000,000 of turnover your companies income tax is nil; one naira above it, your total profits are taxed at 30% and the development levy applies as well. Model it with the small-company threshold monitor.
Development levy
Charged on assessable profit — before capital allowances, not after. Computing it on total profits understates it.
| 2026 new regime | 2025 old regime | |
|---|---|---|
| Applies | Yes | No |
| Rate | 4% | — |
| Base | Assessable profit | — |
The base is ASSESSABLE profit — before capital allowances. Computing it on total profits understates the levy. Small and non-resident companies are exempt.
| Levy | Base | Old rate |
|---|---|---|
| Tertiary Education Tax (TET) | assessable profit | 3% |
| NITDA levy | profit before tax | 1% |
| NASENI levy | profit before tax | 0.250% |
| Police Trust Fund levy | net profit | 0.005% |
No development levy before 2026. Companies paid TET, NITDA, NASENI and Police Trust Fund levies separately — the levies the development levy now consolidates. Work out the levy on your own figures with the development levy calculator.
Minimum effective tax rate
| 2026 new regime | 2025 old regime | |
|---|---|---|
| Applies | Yes | No |
| Rate floor | 15% | — |
| Domestic turnover triggerThe gazette figure. See the notice below — the sources do not agree. | ₦20,000,000,000 | No trigger |
| Alternative turnover trigger reported | ₦50,000,000,000 | None |
| MNE group turnover trigger | €750,000,000 | No trigger |
Check your exposure with the minimum ETR checker — which is labelled indicative for exactly the reason above.
Deduction caps
| 2026 new regime | 2025 old regime | |
|---|---|---|
| Interest — cap as a share of EBITDA | 30% | 30% |
| Donations — cap as a share of profit before tax | 10% | 10% |
| Research and development — cap as a share of turnover | 5% | 5% |
Filing
| 2026 new regime | 2025 old regime | |
|---|---|---|
| CIT return — months after financial year-endNot a fixed calendar date. A 31 December year-end means a 30 June deadline. | 6 months | 6 months |
| First return — months from incorporation | 18 months | 18 months |
The full year of obligations is on the penalties page and in your filing calendar.
Tools that use these rates
Where these rates come from
- Nigeria Tax Act 2025, s.202 (small company definition) · Part III (rates) — verified 15 January 2026CONFLICT SMALL_CO_THRESHOLD: NTA s.202 sets ₦50m for income tax; NTAA s.147 sets ₦100m for VAT. Both apply, to different taxes.
- Companies Income Tax Act (as amended), s.40 (rates and small-company relief) — verified 15 January 2026Three-tier structure: small (≤₦25m turnover) 0%, medium (₦25m–₦100m) 20%, large (>₦100m) 30%. There was no fixed-asset test.
- Nigeria Tax Act 2025, s.59 (development levy) — verified 15 January 2026The base is ASSESSABLE profit — before capital allowances. Computing it on total profits understates the levy. Small and non-resident companies are exempt.
- Companies Income Tax Act (as amended) — verified 15 January 2026No development levy before 2026. Companies paid TET, NITDA, NASENI and Police Trust Fund levies separately — the levies the development levy now consolidates.
- Nigeria Tax Act 2025, minimum effective tax rate provisions — verified 15 January 2026CONFLICT MIN_ETR_TRIGGER: the Act text and EY read ₦20bn; PwC and Baker Tilly summaries say ₦50bn. We default to the gazette figure of ₦20bn and show both.
- Nigeria Tax Act 2025, deduction limitation provisions — verified 15 January 2026
A rate reference is not tax advice, and a rate on its own does not tell you your position. Read the disclaimer, and confirm anything load-bearing against the gazette before acting on it.