Calculate your company's tax liability under Nigeria's CIT Act. 2025 FIRS rates with small company exemption, medium company rate, tertiary education tax, and minimum tax.
Company Income Tax (CIT) is the primary tax on corporate profits in Nigeria, administered by the Federal Inland Revenue Service (FIRS). The CIT Act was significantly amended by the Finance Acts of 2019-2023, introducing a three-tier rate structure based on company size that benefits small and medium enterprises.
Small companies with gross turnover of ₦25 million or less are completely exempt from CIT — a major incentive for MSMEs in Nigeria. Medium companies (₦25M-₦100M turnover) pay a reduced rate of 20%, while large companies (above ₦100M) pay the standard 30% rate. This progressive structure was designed to encourage business formalisation and growth.
In addition to CIT, companies must also pay the Tertiary Education Tax (TET) of 2.5% on assessable profit — this funds Nigeria's tertiary education system (formerly called Education Tax). There's also a minimum tax provision: if your calculated CIT is less than 0.5% of your gross turnover, you pay the minimum tax instead. Small companies are exempt from minimum tax.
Filing is done through FIRS TaxPro Max portal within 6 months of your company's financial year-end. Companies must self-assess, file returns with audited financial statements, and pay any balance due. Late filing attracts penalties of ₦25,000 for the first month and ₦5,000 for each subsequent month, plus interest on unpaid tax.
Yes. Under Section 40(6) of the CIT Act (as amended), companies with gross turnover of ₦25 million or less are exempt from CIT. However, you must still file annual returns with FIRS and maintain proper books of accounts. You're also exempt from minimum tax. This exemption applies to all industries.
Gross turnover is your total revenue/sales before any deductions. Assessable profit is your taxable profit after deducting allowable expenses, capital allowances, and other deductions from your turnover. CIT rate is determined by turnover, but the tax is calculated on assessable profit.