Company Income Tax (CIT) Calculator
Calculates Nigerian corporate income tax across turnover tiers (0%, 20%, 30%), 3% Tertiary Education Tax (EDT), 0.005% Police Trust Fund, and Minimum Tax provisions.
Computational Framework & Statutory Formulas
Assessable Profit = Net Accounting Profit + Disallowable Expenses - Non-Taxable Income
Total Profit = Assessable Profit - Loss Relief B/F - Allowable Capital Allowances (capped at 66.67%)
Small (Turnover ≤ ₦25m): 0% CIT · Medium (₦25m–₦100m): 20% CIT · Large (> ₦100m): 30% CIT
EDT = 3% × Assessable Profit (applies to Medium and Large companies)
Minimum Tax = 0.5% × (Gross Turnover - Franked Investment Income)
Nigerian Economic & Statutory Context
Company Income Tax in Nigeria is administered exclusively by the Federal Inland Revenue Service (FIRS). Companies must file returns within 6 months of their financial year-end. Small companies with gross turnover under ₦25 million enjoy 0% CIT and are exempt from Tertiary Education Tax, provided they register and obtain a Tax Identification Number (TIN).
Frequently Asked Questions (FAQ)
What is the turnover threshold for 0% Company Income Tax in Nigeria?
Under the Finance Act amendments to CITA Section 40, companies with an annual gross turnover of ₦25 million or less are classified as Small Companies and are subject to 0% Company Income Tax.
Are small companies exempt from filing annual tax returns with the FIRS?
No. Small companies are exempt from paying CIT, but they are strictly required to file their audited or management accounts and annual tax returns with the FIRS by the statutory due date.
What is the current rate of Tertiary Education Tax in Nigeria?
The Tertiary Education Tax (EDT) rate is 3% of assessable profit for all Nigerian resident companies except small companies with turnover of ₦25 million or less.
When is a company exempt from the Nigerian Minimum Tax rule?
Under Section 33 of CITA, companies in their first 4 calendar years of operation, agricultural businesses, and small companies with turnover of ₦25 million or less are exempt from Minimum Tax.