Company Income Tax Calculator

Calculate your CIT liability based on Nigeria's three-tier system. Small companies pay 0%. Find out what you owe.

Your Business Details

Your total annual revenue/sales

Operating costs, salaries, rent, utilities, etc.

🎉

Small

< ₦25M

0%

📊

Medium

₦25M - ₦100M

20%

🏢

Large

> ₦100M

30%

Estimated CIT Payable

₦3,000,000

CIT Calculation

Gross Turnover₦45,000,000
Less: Allowable Expenses- ₦28,000,000
Less: Capital Allowances- ₦2,000,000
Taxable Profit₦15,000,000
CIT Rate (medium company)20%
CIT Payable₦3,000,000

Minimum Tax Check

Minimum Tax (0.5%)₦225,000

✓ You pay the higher: ₦3,000,000

Effective Tax Rate

6.7%

💡 Insights

  • You pay 20% instead of 30% — saving you ₦1,500,000 compared to large company rates.

Understanding Nigeria's CIT Tiers

🎉

SMALL COMPANY

Turnover < ₦25 Million

CIT Rate: 0%

Yes, really. Zero percent. This is a huge incentive for small businesses in Nigeria.

📊

MEDIUM COMPANY

Turnover ₦25M - ₦100 Million

CIT Rate: 20%

A reduced rate to support growing businesses as they scale up.

🏢

LARGE COMPANY

Turnover > ₦100 Million

CIT Rate: 30%

The standard corporate rate. Plus 2.5% Tertiary Education Tax.

What Can You Deduct?

FULLY DEDUCTIBLE

  • Staff salaries and wages
  • Rent and utilities
  • Professional fees
  • Marketing and advertising
  • Office supplies
  • Business travel
  • Insurance premiums
  • Bad debts (written off)
  • Repairs and maintenance

CAPITAL ALLOWANCES

  • Buildings: 10%/year
  • Plant & machinery: 25%/year
  • Motor vehicles: 25%/year
  • Furniture: 20%/year
  • Computer equipment: 25%/year

NOT DEDUCTIBLE

  • Personal expenses
  • Entertainment (limited)
  • Fines and penalties
  • Donations (above limits)
  • Capital expenditure (use allowances)

When and How to File

1

Within 18 Months of Incorporation

Register with FIRS and obtain Tax Identification Number (TIN).

2

Within 6 Months of Year-End

File annual CIT returns with audited financial statements.

3

Quarterly Installments

Large companies pay CIT in quarterly installments.

4

Penalties for Late Filing

₦25,000 for first month, ₦5,000 for each subsequent month, plus interest on unpaid tax.

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