Question 1

What is the personal income tax rate in Nigeria for 2026?

Accepted Answer

Under the Nigeria Tax Act 2025 (effective 2026), PIT uses progressive bands: first ₦800,000 is tax-free, then 15% (₦800K-₦3M), 18% (₦3M-₦12M), 21% (₦12M-₦25M), 23% (₦25M-₦50M), and 25% (above ₦50M). The old Consolidated Relief Allowance is abolished.

Question 2

What is the company income tax rate in Nigeria?

Accepted Answer

CIT rates for 2026: Small companies (turnover ≤₦50M and assets ≤₦250M, excluding professional services) pay 0% CIT, 0% CGT, and 0% Development Levy. All other companies pay 30% CIT plus 4% Development Levy. The medium company tier (20%) has been abolished under NTA 2025.

Question 3

What is the VAT rate in Nigeria?

Accepted Answer

Nigeria's VAT rate is 7.5%. It applies to most goods and services. Exempt items include basic food, medical supplies, educational materials, baby products, and agricultural equipment. Businesses with turnover above ₦25M must register for VAT.

Question 4

What are the withholding tax rates in Nigeria?

Accepted Answer

WHT rates: 5% on contracts and agency fees. 10% on rent, dividends, interest, royalties, professional fees, technical fees, and directors fees. WHT is an advance payment that can be credited against your final income tax liability.

Question 5

What is the small company exemption in Nigeria?

Accepted Answer

Companies with annual turnover of ₦50 million or less AND total fixed assets of ₦250 million or less qualify for 0% CIT. They are also exempt from the 4% Development Levy. They must still file annual returns with NRS (Nigeria Revenue Service).

Question 6

How much tax do I pay in Nigeria?

Accepted Answer

Under the 2026 rules, your first ₦800,000 is tax-free. After that, progressive rates apply: 15% up to ₦3M, 18% up to ₦12M, 21% up to ₦25M, 23% up to ₦50M, and 25% above ₦50M. Use our free calculator for your exact amount.

Question 7

Is my small company exempt from CIT?

Accepted Answer

If your company has annual turnover ≤₦50M AND total fixed assets ≤₦250M, you qualify for 0% Company Income Tax under the 2026 rules. You must still file annual returns with NRS (Nigeria Revenue Service).

Question 8

When are Nigerian tax deadlines?

Accepted Answer

Key deadlines: PAYE remitted by the 10th monthly, VAT filed by the 21st monthly, CIT within 6 months of year-end, WHT within 21 days of deduction month-end.

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