← The Act in plain English

Nigeria Tax Act, 2025 · NTA s.56

Company income tax — 0% for a small company, 30% otherwise

A small company pays nothing; every other company pays 30% of total profits.

Who this lands on: Every limited company. Sole traders and partnerships are taxed as individuals.

Tax is charged on the total profits of a company at 30%, except for a small company, which is charged at 0% (NTA s.56).

A company is small only if it passes both limbs: gross turnover of ₦100,000,000 or less in the year, and total fixed assets of ₦250,000,000 or less.

Failing either limb takes the whole profit into charge at the full rate, so the asset figure matters as much as the turnover figure.

A small company still files. The relief is on the tax, not on the return.

What to do with this

Also in What a company pays

This is a plain reading of the Act for orientation, not tax advice. Where money is at stake, check the section itself or ask an accredited tax agent.