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Company Income Tax (CIT) is the cornerstone of corporate fiscal responsibility in Nigeria. With the enactment of the Nigeria Tax Act 2025, the 2026 tax year introduces a radical simplification of the CIT landscape. The previous multi-tier system (0%, 20%, 30%) has been streamlined to make Nigeria more competitive for business growth.
CIT Rates for 2026
In 2026, the CIT rate is determined solely by your annual gross turnover. The distinction between ‘medium’ and ‘large’ companies has effectively merged for income tax purposes:
- Small Companies (Turnover ≤ ₦100 Million): These are now 100% exempt from CIT. If your revenue is below this mark and your fixed assets are under ₦250 million, you pay 0% corporate tax.
- Standard Companies (Turnover > ₦100 Million): These are subject to a flat CIT rate of 30% on their taxable profits.
For a broader view of all business taxes, see The Ultimate Guide to Business Taxes in Nigeria (2026 Edition). If you are an SME, ensure you check the Complete Nigeria Business Tax Guide for SMEs and Startups to see if you qualify for these exemptions.
The New Development Levy
The 2026 reforms replaced several fragmented levies (like Tertiary Education Tax and the Police Trust Fund) with a single 4% Development Levy. This levy is charged on the assessable profits of all companies except small companies. For a deeper explanation of the three tiers of tax, read Federal, State and Local Taxes in Nigeria Explained.
Filing and Deadlines
Even if your company qualifies for the 0% rate, you are legally required to file your CIT returns within six months of your financial year-end. Failure to file attracts the new, steeper tax penalties in Nigeria. To prepare, you can use our Nigerian Tax Compliance Checklist for Companies. For official legislation, visit the Nigeria Revenue Service (NRS) or consult the PwC Nigeria Tax Summary.”