Tax
Do you pay company income tax? The ₦100 million small company test
Under the Nigeria Tax Act 2025, small companies pay no company income tax and no development levy. Here is how to tell if you qualify.
Floray Professionals24 September 20261 min read
The Nigeria Tax Act 2025 draws a clear line between small companies and everyone else. Which side you fall on decides whether you pay company income tax at all.
The test
A company counts as small when both of these are true for the year:
- turnover is ₦100 million or less, and
- fixed assets total ₦250 million or less.
Companies that provide professional services do not qualify, whatever their size.
What small companies pay
A small company pays 0% company income tax and is exempt from the development levy. It still has to register, keep records and file returns, and it still deals with VAT, PAYE for its staff and withholding where they apply.
What everyone else pays
Other companies pay company income tax at 30% of taxable profit, plus a development levy of 4% of assessable profit. Together that is up to 34% of profit before reliefs.
Watch the threshold
Growth is good, but crossing ₦100 million of turnover changes the tax picture sharply. Plan for it: forecast when you will cross, price for it and set money aside from the start of that year.
Estimate yours
Our company tax estimator applies the test and estimates the tax and levy. Our tax team can confirm your position, file on time and apply every relief you qualify for.
General information only. The rules have detail and exceptions, so take advice for your company.
