Nigeria company tax calculator — NTA 2025
Work out Company Income Tax and the Development Levy for a Nigerian company under the Nigeria Tax Act 2025 — including the 0% small-company rate. Updates live as you type.
Your company
Your company tax
Enter your turnover and assessable profit to see your Company Income Tax and Development Levy under the Nigeria Tax Act 2025.
Small companies (≤ ₦50M turnover and ≤ ₦250M fixed assets) pay 0% CIT and no levy. Numbers update as you type — no submit button.
What this calculator works out
Company Income Tax is charged on a registered company's profits, not on an individual's income — so it applies if you trade through a limited company, and not if you are a sole trader or freelancer operating in your own name. Under the Nigeria Tax Act 2025 the standard rate is 30%, but a company that qualifies as a "small company" pays 0%.
Qualifying means staying under two caps at once: gross turnover of ₦50,000,000 or less, and total fixed assets of ₦250,000,000 or less. Professional-services firms are excluded regardless of size. This is a cliff rather than a taper — cross either line and the full 30% applies to your profits, not just to the excess.
On top of CIT sits the Development Levy at 4% of assessable profit. Small companies are exempt from it, as are non-resident companies. The calculator applies both, tells you which side of each threshold you fall on, and shows the working.
How to use it
Enter gross turnover and fixed assets
Both matter — the small-company test needs turnover at or under ₦50,000,000 AND fixed assets at or under ₦250,000,000. Failing either one puts you on the standard rate.
Flag professional services if that is your business
Professional-services firms cannot be small companies under NTA 2025 whatever their size, so the exemption is unavailable and the calculator will not offer it.
Enter assessable profit
Profit after allowable business deductions, not turnover and not accounting profit. This is the figure the Development Levy is charged on.
Add capital allowances and brought-forward losses
Both reduce the CIT base. Capital allowances come off qualifying capital expenditure; prior-year losses relieved this year come off too.
A worked example — and why the threshold matters
Two companies with identical assessable profit of ₦8,000,000 and identical fixed assets. The only difference is turnover: one sits under the small-company cap, the other above it.
| Company A — turnover ₦40,000,000 | Small company |
|---|---|
| Company Income Tax₦8,000,000 × 0% | ₦0 |
| Development LevyExempt as a small company | ₦0 |
| Company A total tax | ₦0 |
| Company B — turnover ₦120,000,000 | Standard rate |
| Company Income Tax₦8,000,000 × 30% | ₦2,400,000 |
| Development Levy₦8,000,000 × 4% | ₦320,000 |
| Company B total tax | ₦2,720,000 |
Same profit, ₦2,720,000 difference in tax. That is what makes the ₦50,000,000 line worth watching rather than discovering at year end: a company just under it that wins one large contract can find its entire profit taxed at 30%, plus a Development Levy it was previously exempt from. The threshold tests turnover, not profit — so a high-revenue, thin-margin business can cross it while earning very little.
Rates and thresholds
The figures the calculator applies, under NTA 2025.
| Band or item | Rate or figure | Notes |
|---|---|---|
| Standard CIT rate | 30% | On total profits, for companies that do not qualify as small. |
| Small-company CIT rate | 0% | For companies under both caps below, excluding professional services. |
| Small-company turnover cap | ₦50,000,000 | Gross annual turnover at or below this. NTA 2025 §56 / §202. |
| Small-company fixed-assets cap | ₦250,000,000 | Total fixed assets at or below this. Both caps must be met. |
| Development Levy | 4% | Of assessable profit. Small and non-resident companies are exempt. |
Threshold source: NTA 2025 §56 / §202, last verified against the primary gazette on 2026-05-31. Note that several widely-circulated summaries still quote ₦100M for this cap — that figure came from the certified bill and was superseded by the gazette. TaxJeje reads the gazette.
Common questions
What is the company income tax rate in Nigeria?
30% as standard, or 0% for a company that qualifies as a small company under NTA 2025. A Development Levy of 4% of assessable profit applies on top for companies that are not small or non-resident.
What qualifies as a small company in Nigeria?
Gross turnover of ₦50,000,000 or less AND total fixed assets of ₦250,000,000 or less. Both caps must be satisfied. Professional-services firms are excluded from the definition regardless of their size.
Is the small-company threshold ₦50 million or ₦100 million?
₦50,000,000. The ₦100M figure appears in many summaries because it was in the certified bill, but the gazette sets ₦50,000,000 and the gazette governs. This is one of the most commonly misreported figures in NTA 2025 coverage.
What is the Development Levy?
A 4% charge on assessable profit, separate from Company Income Tax and payable alongside it. Small companies and non-resident companies are exempt. It is charged on profit, not on turnover.
Do I pay company tax as a freelancer?
Not unless you trade through a registered company. A sole trader or freelancer operating in their own name pays Personal Income Tax on business profits instead. If you have incorporated, the company pays CIT and you pay PIT on what you draw from it.
What happens if my turnover crosses the threshold mid-year?
The test is on the year's gross turnover, so crossing it means the standard 30% applies to that year's profits rather than only to the portion above the line. It is worth tracking turnover through the year rather than discovering the position at filing.
Does this include VAT?
No — VAT is a separate tax on sales rather than profits, though the same ₦50,000,000 figure happens to govern the small-business VAT exemption. Use the VAT calculator for that side.
Is this calculator free?
Yes, and there is no sign-up. It runs in your browser — nothing you enter is sent anywhere. A TaxJeje account can estimate CIT from your actual books rather than from figures you type in.