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SME Owner Tax Guide
Registered companies (Ltd, PLC) with CAC registration
Small Companies Pay 0% Corporate Tax
If your turnover is ≤₦50M and you're not a professional services firm.
Small Company CIT
0% (≤₦50M)
Medium Company CIT
20% (₦50-100M)
VAT Threshold
₦25M Turnover
PAYE Required
Yes (Employees)
What taxes does my company pay?
Depends on turnover: ≤₦50M = 0% CIT, ₦50-100M = 20% CIT, >₦100M = 30% CIT. VAT if turnover >₦25M. PAYE if you have employees. WHT on certain payments.
Example:
Turnover of ₦40M (non-professional) = 0% CIT, no VAT required, but still pay PAYE for staff.
What You Can Deduct
✓Employee salaries and benefits
✓Office rent and utilities
✓Equipment and assets (capital allowances)
✓Professional fees (legal, accounting)
✓Marketing and advertising
✓Training and development
✓Business insurance
Common Mistakes to Avoid
- ✗Professional services thinking they qualify for 0% CIT
- ✗Not registering for VAT when required (>₦25M)
- ✗Late PAYE remittance (penalties!)
- ✗Not claiming capital allowances
Key Deadlines
PAYE Remittance
Previous month salaries
10th Monthly
VAT Filing
If VAT registered
21st Monthly
WHT Remittance
For applicable payments
21st Monthly
CIT Filing
Annual company tax
6 months after year-end