Small Business Taxes in Nigeria
Running a registered company? Here's your guide to business taxation under the Nigeria Tax Act 2025.
Great News for Small Businesses
The 2025 tax reforms are business-friendly:
- 0% CIT for companies with turnover under ₦50 million
- Simplified compliance for small businesses
- Better VAT input credits
Types of Business Taxes
1. Companies Income Tax (CIT)
Rates by company size:
Due: Within 6 months of financial year end
2. Value Added Tax (VAT)
Rate: 7.5% on taxable goods and services
Registration: Mandatory if turnover exceeds ₦25 million
What's VAT-able:
- Most goods and services
- Professional fees
- Exports
- Basic food items
- Educational materials
- Medical supplies
- Financial services
- Residential rent
- Public transport
3. Withholding Tax (WHT)
You must deduct and remit WHT when paying:
Remit: Within 21 days of deduction
Employee-Related Taxes
PAYE
- Deduct from employee salaries
- Remit by 10th of following month
- Annual returns by January 31
Pension
- Employer contributes 10%
- Employee contributes 8%
- Remit within 7 days of salary payment
NHF
- 2.5% of employee basic salary
- Deduct and remit to FMBN
NSITF
- 1% of employee gross salary
- Employer bears the cost
ITF
- 1% of annual payroll
- If you have 5+ employees or payroll > ₦50M
Tax Calendar
Compliance Tips
Use Our Business Tools
- CIT Calculator - Estimate company tax
- VAT Calculator - Calculate VAT on transactions
- Employer Cost - Full cost of hiring
- Vendor Compliance - Check vendor TIN status