Company Income Tax (CIT) Calculator
Calculates Nigerian corporate income tax under CITA Cap C21 (2026 Enacted): Small company (≤₦100m) 0% CIT, Medium (₦100m-₦250m) 20% CIT, Large (>₦250m) 30% CIT, 4% Development Levy (consolidating Tertiary Education Tax and Police Trust Fund), and 15% Minimum Effective Tax Rate (METR).
Computational Framework & Statutory Formulas
Assessable Profit = Net Accounting Profit + Disallowable Expenses - Non-Taxable Income
Total Profit = Assessable Profit - Loss Relief B/F - Allowable Capital Allowances (capped at 66.67% or 100% for manufacturing/agric)
Small (Turnover ≤ ₦100m): 0% CIT · Medium (₦100m–₦250m): 20% CIT · Large (> ₦250m): 30% CIT
Development Levy = 4% × Assessable Profit (applies to Medium and Large companies)
Turnover Tax Abolished for Regular Companies · 15% Minimum Effective Tax Rate (METR) for Turnover ≥ ₦50 Billion
Nigerian Economic & Statutory Context
Company Income Tax in Nigeria is administered exclusively by the Federal Inland Revenue Service (FIRS). Companies must file returns within 6 months of their financial year-end. Under CITA Cap C21 (2026 Enacted), small companies with gross turnover up to ₦100 million enjoy 0% CIT and are exempt from the Development Levy, provided they register and obtain a Tax Identification Number (TIN).
Frequently Asked Questions (FAQ)
What is the turnover threshold for 0% Company Income Tax under CITA 2026?
Under CITA Cap C21 (2026 Enacted / Nigeria Tax Act 2026), companies with an annual gross turnover of ₦100 million or less (expanded from ₦25 million) are classified as Small Companies and pay 0% Company Income Tax (excluding professional service practices).
Are small companies exempt from filing annual tax returns with the FIRS?
No. Small companies are exempt from paying CIT and Development Levy, but they remain legally required to file their audited or management accounts and annual tax returns with the FIRS by the statutory due date.
What is the Development Levy rate replacing Tertiary Education Tax in Nigeria?
Under the Nigeria Tax Act 2026 (CITA Cap C21 enacted), the Tertiary Education Tax (which was 3%) has been consolidated and enacted as the Development Levy at 4% of assessable profit for medium and large companies. Small companies with turnover of ₦100 million or less are 100% exempt.
Is the 0.5% turnover Minimum Tax still active in Nigeria under CITA 2026?
Under the 2026 enacted CITA reforms, the 0.5% gross turnover minimum tax has been abolished for standard Nigerian companies. A 15% Minimum Effective Tax Rate (METR) applies strictly to large conglomerates with annual turnover of ₦50 billion or more.