← The Act in plain English

Nigeria Tax Act, 2025 · NTA s.59

Development levy — 4% of assessable profits

A 4% levy on assessable profits, charged alongside company income tax.

Who this lands on: Companies chargeable to tax, other than small companies and non-resident companies.

A development levy of 4% is charged on the assessable profits of a company (NTA s.59).

Small companies and non-resident companies are outside it, so a company that passes the small-company test pays neither the levy nor company income tax.

It is assessed and collected with the company's income tax, so it lands with the same return, not a separate filing.

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.