From 2026, a small company (turnover up to ₦100 million and fixed assets up to ₦250 million, and not a professional services firm) pays 0% company income tax and no development levy. Other companies pay 30% company income tax plus a 4% development levy on their profits. Enter your figures below to see your tax.
How the Company Income Tax Calculator works
- Enter your yearly turnover and total fixed assets.
- Enter your taxable profit for the year.
- Say whether the company provides professional services.
- The calculator checks if you are a small company, then applies 0% or 30% CIT plus the 4% levy.
Worked example
A distribution company has turnover of ₦250,000,000, fixed assets of ₦60,000,000 and taxable profit of ₦32,000,000. Turnover is above ₦100 million, so it is not a small company.
Company income tax: ₦32,000,000 × 30% = ₦9,600,000
Development levy: ₦32,000,000 × 4% = ₦1,280,000
Total: ₦10,880,000
Common mistakes to avoid
- Assuming 0% applies once turnover is under ₦100 million, without checking fixed assets
- Forgetting the 4% development levy
- Using turnover instead of taxable profit
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The development levy
The 4% development levy replaced several older levies (tertiary education tax, IT levy, NASENI levy and Police Trust Fund levy). It is charged on assessable profits of companies that are not small companies.
Taxable profit is not the same as cash
Taxable profit is your accounting profit adjusted for tax rules, for example adding back expenses the law does not allow and taking off capital allowances. Use this calculator for planning, and let an accountant prepare the return.
Frequently asked questions
What is the small company threshold for 2026?
Turnover of ₦100 million or less and fixed assets of ₦250 million or less, and the company must not be a professional services firm.
Is the CIT rate 30%?
Yes, for companies that are not small. A lower rate may be approved for some strategic sectors.
Are these the latest tax rules?
They follow the Nigeria Tax Act 2025, which took effect on 1 January 2026, and were last checked on the date shown on this page. Tax rules can change, so confirm big decisions with a tax adviser or the Nigeria Revenue Service.
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