CIT
(Company Income Tax)
What is CIT?
Company Income Tax (CIT) is the tax Nigerian companies pay on their profits. Nigeria uses a three-tier system: 0% for small companies (turnover <ā¦25M), 20% for medium (ā¦25M-ā¦100M), and 30% for large (>ā¦100M).
CIT is calculated on taxable profit (revenue minus allowable expenses), but the rate depends on gross turnover.
CIT in Nigeria
The three-tier system was introduced to support small businesses. Small companies with turnover below ā¦25M pay 0% CIT ā a significant incentive. Large companies also pay 2.5% Tertiary Education Tax.
Example
A company with ā¦45M turnover and ā¦15M taxable profit pays 20% CIT = ā¦3,000,000.
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