Companies Income Tax under the two-tier regime.
Company income tax
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Company size
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Applied rate
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Profit after CIT
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From three tiers to two
Nigerian company tax used to come in three sizes. Small companies paid nothing, medium companies paid 20 percent, and large companies paid 30 percent. The 2025 reform scrapped the middle tier entirely. There is no more 20 percent band. A company is now either small, paying zero Companies Income Tax, or it is everyone else, paying the full rate. This calculator runs that binary test for you and returns the tax on your assessable profit accordingly.
That cliff edge is the whole story of this tool. There is no gentle slope between zero and the top rate. The moment a company stops qualifying as small, its tax jumps from nothing to the prevailing rate on its profit. Knowing exactly where that line sits, and how close your business is to it, is worth real money. Because these thresholds and rates are still settling under the reform, treat the figures here as the position this calculator models and confirm the current numbers with the FIRS, now reorganised as the Nigeria Revenue Service.
Both tests, not either test
This is where companies trip up. To count as small you must pass two separate tests at the same time. Annual turnover must be at or below the small-company turnover cap, and total fixed assets must be at or below the fixed-asset cap. The thresholds this calculator applies are turnover of NGN 50 million and fixed assets of NGN 250 million. Pass both and your rate is 0 percent. Fail even one and you pay the full 30 percent on your profit.
Consider the asset-heavy trap. A young manufacturer turns over only NGN 40 million in its first full year, comfortably under the turnover cap, but it has already sunk NGN 400 million into plant and machinery. That single breach of the fixed-asset test pushes it into the large-company category. Its modest revenue does not save it. The lesson for founders is that buying heavy equipment early can flip your tax status long before your sales would. The applied rate field in this tool tells you which side of the line your inputs fall on.
Two companies, two outcomes
Start with the default in the tool. A company makes NGN 50 million in assessable profit, turns over NGN 200 million, and holds NGN 120 million in fixed assets. Its turnover blows past the NGN 50 million cap, so it fails the small-company test and is taxed at the rate this calculator applies, 30 percent. That is NGN 15 million in Companies Income Tax, leaving NGN 35 million in profit after CIT. Now picture a genuinely small firm: NGN 18 million profit, NGN 40 million turnover, NGN 40 million in assets. It clears both caps, so its CIT is NGN 0 and it keeps the whole NGN 18 million.
| Measure | Large company (default) | Small company |
|---|---|---|
| Assessable profit | NGN 50,000,000 | NGN 18,000,000 |
| Turnover (cap NGN 50m) | NGN 200,000,000 | NGN 40,000,000 |
| Fixed assets (cap NGN 250m) | NGN 120,000,000 | NGN 40,000,000 |
| Applied rate | 30% | 0% |
| Companies Income Tax | NGN 15,000,000 | NGN 0 |
The gap between those two bars is the prize for staying small, and it is also the warning. A company that drifts just over a single cap goes from owing nothing to owing the full rate on its profit. That is why the size test deserves attention before the tax computation, not after.
Does the 0 percent rate also waive other corporate levies?
A company that qualifies as small for Companies Income Tax is generally outside the scope of the related corporate development levy too. Larger companies face that extra levy on top of CIT, which is why the headline 30 percent is not the full story for them. A dedicated corporate tax payable tool shows the combined figure.
Is turnover the same as profit for this test?
No, and conflating them is a common error. Turnover is your total revenue or sales, while assessable profit is what is left after allowable deductions. The small-company test looks at turnover and assets, but the tax itself is charged on profit. A company can have high turnover and thin profit and still be taxed at the full rate.
What counts toward the fixed-asset figure?
Broadly, the capital assets on the company's books such as property, plant, machinery and equipment. Because the precise definition and the threshold can shift under the new regime, a borderline company should agree the figure with its accountant and confirm the current cap with the FIRS rather than relying on a single estimate.