Free Tool

Nigerian Small Business Tax Calculator

Estimate your Companies Income Tax, Development Levy, and VAT obligations in under two minutes. Based on the Nigeria Tax Act 2025. No accountant needed.

FinBuk Tax Calculator

Simple · Fast · Accurate

Step 1 of 250%

Tell us about your business

e.g., Legal, Accounting, Medical, Engineering, Consultancy

Professional services are excluded from Small Company tax exemptions

₦

Total sales before any deductions. This determines your business category and VAT obligation.

What this calculator covers

Companies Income Tax

CIT rate based on your business size: 0% (Small), 20% (Medium), or 30% (Large).

Development Levy

Additional 4% levy on net profit for Medium and Large companies.

VAT Obligation

Whether you're required to register for VAT and how much you'd need to collect.

Frequently asked questions

What taxes does a small business pay in Nigeria?
Under the Nigeria Tax Act 2025, most small businesses pay Companies Income Tax (CIT) and a Development Levy. Businesses with annual turnover below ₦100 million and fixed assets under ₦250 million are classified as Small Companies and currently pay 0% CIT. However, if your turnover exceeds ₦25 million you must also register for VAT and collect 7.5% on eligible sales.
What is the small business tax rate in Nigeria?
Small Companies (turnover ≤ ₦100M, fixed assets < ₦250M) pay 0% Companies Income Tax and 0% Development Levy. Medium Companies (turnover ₦100M–₦250M) pay 20% CIT and 4% levy. Large Companies (turnover > ₦250M or professional services) pay 30% CIT and 4% levy. All rates apply to net profit before tax, not total revenue.
When do I need to register for VAT in Nigeria?
VAT registration becomes mandatory once your annual turnover reaches ₦25 million. Below that threshold, registration is voluntary. Once registered, you must charge customers 7.5% VAT on eligible goods and services, file monthly VAT returns, and remit the net amount (VAT collected minus VAT you paid on purchases) to FIRS.
What is Companies Income Tax (CIT) in Nigeria?
CIT is the main business income tax in Nigeria, levied on the net profit of incorporated companies. The rate depends on your company size: 0% for Small Companies, 20% for Medium Companies, and 30% for Large Companies. Professional service firms (legal, medical, accounting, etc.) are always treated as Large Companies regardless of turnover.
What is the Development Levy in Nigeria?
The Development Levy is an additional tax on company profits introduced under the Nigeria Tax Act 2025. Small Companies pay 0%, while Medium and Large Companies pay 4% of net profit before tax. It is calculated on the same profit base as CIT and paid alongside your annual tax return.
Is this calculator accurate for my business?
This tool provides a reasonable estimate based on publicly available tax rates under the Nigeria Tax Act 2025. It is designed for educational purposes. Your actual liability may differ based on allowable deductions, capital allowances, carry-forward losses, and other factors. For a precise assessment, consult a qualified tax professional or use Finbuk to track your finances year-round.