Small Company CIT Exemption: Do You Qualify?

Good news for small Nigerian businesses: under the Nigeria Tax Act 2025, if your company's annual gross turnover is ₦50 million or less, you are exempt from Companies Income Tax (CIT) and the Development Levy. This threshold was increased from the previous ₦25 million.

To qualify, your company must have gross turnover of ₦50 million or less in the relevant tax year. This applies to incorporated companies—sole proprietorships and partnerships fall under Personal Income Tax instead.

Even if you're exempt from CIT, you still need to file annual returns with NRS. The exemption only removes the tax liability, not the reporting requirement.

Companies with turnover above ₦50 million pay CIT at the applicable rate. The standard CIT rate remains 30% for large companies, with potential reductions planned for the future.

TaxTask automatically detects your revenue threshold and calculates the applicable CIT rate. Our dashboard shows your current liability and projected year-end position in real-time.