Company Income Tax (CIT)
CIT is the tax on company profits in Nigeria, administered by the Federal Inland Revenue Service. The rate depends on turnover: small companies pay 0%, medium companies 20%, and large companies 30%. It applies to registered companies, not to sole proprietors.
The rates
| Company size | Annual turnover | CIT rate |
|---|---|---|
| Small | ≤ ₦50,000,000 (fixed assets ≤ ₦250M) | 0% |
| Medium | ₦50M – ₦100M | 20% |
| Large | Above ₦100M | 30% |
Worked example
A company with ₦40,000,000 turnover and ₦30,000,000 of fixed assets qualifies as small and pays ₦0 CIT, though it must still file a return. The same company at ₦120,000,000 turnover pays 30% on assessable profits.
The exception that catches people
Professional service companies (consulting, legal, accounting and similar) do not qualify for the 0% small-company rate regardless of turnover.
Filing is due within 6 months of your accounting year end. See the small business tax guide.
More Nigerian tax terms
- Consolidated Relief Allowance (CRA)
- Development Levy
- Direct assessment
- FIRS (Federal Inland Revenue Service)
- Input VAT
- Minimum wage tax exemption
- Output VAT
- PAYE (Pay-As-You-Earn)
- Personal Income Tax (PIT)
- Rent relief
- Tax Clearance Certificate (TCC)
- Tax Identification Number (TIN)
- Value Added Tax (VAT)
- Withholding Tax (WHT)
Tax that works itself out
Claryeo turns your invoices and expenses into export-ready PIT, CIT and VAT summaries.
Join the waitlist