Company Income Tax Calculator Nigeria

Estimate your company's CIT liability — 0% for small, 20% for medium, 30% for large — plus Education Tax and Police Trust Fund levy.

Company Tax Details

Annual Turnover (Revenue)

₦

Assessable Profit (before tax)

₦

Company category: Large — Turnover > ₦100M — 30% CIT

Total Tax Liability

₦16,500,000

Turnover

₦200,000,000

Assessable Profit

₦50,000,000

CIT (Large: 30%)

₦15,000,000

Education Tax (2%)

₦1,000,000

Police Trust Fund (1%)

₦500,000

Total Tax

₦16,500,000

Effective Rate

33.0%

Net After-Tax Profit

₦33,500,000

How to Use This Calculator

Enter your company's annual turnover (total revenue) — this determines which CIT rate category you fall into. Then enter your assessable profit (profit before tax, after allowable deductions). The calculator applies CIT, Education Tax, and the Police Trust Fund levy to show your total tax liability and effective rate.

Note: This is an estimation tool. Actual CIT liability depends on capital allowances, tax losses carried forward, and other adjustments best handled by a qualified accountant.

CIT Rates and Formula

CIT Category: Small company — Turnover < ₦25M → CIT = 0% Medium company — Turnover ₦25M–₦100M → CIT = 20% Large company — Turnover > ₦100M → CIT = 30% Education Tax = Assessable Profit × 2% Police Trust Fund = Assessable Profit × 1% Total Tax = CIT + Education Tax + Police Trust Fund Net Profit = Assessable Profit − Total Tax

Small companies (turnover under ₦25 million) are fully exempt from CIT, though they still pay Education Tax and may be subject to minimum tax provisions in certain situations.

Example

Scenario: Medium Manufacturing Company

Adaobi runs a textile company with ₦80M annual turnover and ₦12M assessable profit.

Annual turnover₦80,000,000

Company categoryMedium (₦25M–₦100M)

Assessable profit₦12,000,000

CIT = ₦12M × 20%₦2,400,000

Education Tax = ₦12M × 2%₦240,000

Police Trust Fund = ₦12M × 1%₦120,000

Total tax liability₦2,760,000

Net after-tax profit₦9,240,000

If Adaobi's company grows its turnover above ₦100M, it moves to the large company rate of 30% — an important threshold to plan for.

Nigerian CIT Key Facts

FIRS filing: CIT returns must be filed with the Federal Inland Revenue Service within 6 months of the company's accounting year end.
Minimum tax: Even if a company makes no profit, minimum tax may apply — typically 0.5% of gross turnover for large companies.
Capital allowances: Depreciation on qualifying assets is added back to profit, then capital allowances are deducted — often significantly reducing taxable profit.
Pioneer status: NIPC can grant pioneer status to qualifying companies, providing a 3–5 year tax holiday on CIT.
Payment: CIT is paid in six equal instalments (if the company opts for instalment payments) or in full by the filing deadline.

FAQ

Small companies with annual turnover below ₦25 million pay 0% Company Income Tax. This exemption was introduced to reduce the tax burden on small businesses and encourage formalisation. However, these companies still need to file annual returns and may pay Education Tax (2%) on assessable profits.

Education Tax (also called Tertiary Education Tax or TET) is 2% of a company's assessable profit. It is administered by FIRS and the proceeds fund tertiary educational institutions through the Tertiary Education Trust Fund (TETFund). It applies to all Nigerian companies regardless of their CIT rate.

The Police Trust Fund Act 2019 introduced a 0.005% (0.5%) levy on net profit of companies. However, subsequent FIRS interpretations have placed this at varying rates. The calculator uses 1% of assessable profit as a conservative estimate — always confirm with your tax consultant for the precise current rate.

CIT returns and payment are due within 6 months of the end of your accounting year. For companies with a December year-end, this means filing by June 30. Late filing attracts a penalty of ₦25,000 for the first month and ₦5,000 for each subsequent month, plus 10% per annum interest on unpaid tax.