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Tax planning is the legal art of arranging your business affairs to minimize tax liability. In 2026, with the introduction of the 4% Development Levy and the harmonization of Capital Gains Tax, ‘winging it’ is no longer an option. Smart businesses are now using the provisions of the Nigeria Tax Act 2025 to stay lean and compliant.
1. Maximize Capital Allowances
Instead of just looking at expenses, look at your assets. In 2026, the NRS allows for accelerated Capital Allowances on digital infrastructure and renewable energy equipment. This deduction reduces your taxable profit before the 30% CIT is applied. Read The Ultimate Guide to CIT for a breakdown of these rates.
2. Strategic Use of WHT Credits
Don’t let your WHT Credit Notes expire. Ensure your finance team reconciles these on TaxPro Max every month. These credits are cash equivalents that can offset your CIT bill. Also, ensure you aren’t over-deducting; check our WHT Calculation Guide for the 2026 rates.
3. Leverage SME Exemptions
If your turnover is below ₦100 million, you are exempt from the 4% Development Levy. If it’s below ₦50 million, you pay 0% CIT. Staying within these brackets during your growth phase can provide massive reinvestment capital. For a full list of what you don’t have to pay, see our Compliance Checklist. For expert strategy, consult KPMG Nigeria or the NRS Portal.”