08/01/2026
NEW NIGERIA TAX LAW IN SIMPLE TERMS 🇳🇬
Many people think everyone must pay tax.🤷🏾♀️ Under the new tax law, that is not true. Here's how it works 👇🏽
INDIVIDUALS (Workers & Traders)
If your total income in a year is ₦800,000 or less: 👉🏾You pay NO personal income tax.
If you earn more than ₦800,000, you pay tax on the amount above ₦800,000 like this:👇🏾
• ₦800,001 – ₦3 million pay 15%
• ₦3m – ₦12m pay 18%
• ₦12m – ₦25m pay 21%
• ₦25m – ₦50m pay 23%
• Above ₦50m pay 25%
(Each portion of your income is taxed at the rate for that band.)
BUSINESS NAME OWNERS (Sole Proprietors)
If your business profit for the year is ₦800,000 or less:
👉🏾NO personal income tax
If your profit is more than ₦800,000:
👉🏾You pay personal income tax based on the same bands above.👆🏾
SMALL COMPANIES (LIMITED LIABILITY)
Your company is a small company if:
✔️ Annual turnover is ₦50 million
✔️ Total fixed assets is ₦250 million
👉🏾NO Company Income Tax = 0% (ZERO tax)
BIG COMPANIES
If your company’s turnover is above ₦50 million or fixed assets are above ₦250 million: 👉🏾 Company Income Tax = 30%
⚠️ VERY IMPORTANT
Paying zero tax does NOT mean:
❌ No CAC registration
❌ No filing of returns
✔️ You must still register your business
✔️ File tax returns
✔ Stay compliant
Tax law is now more friendly,
but compliance is still compulsory.
📩 Need help with company registration, upgrade of business name to Limited Liability Company, or tax compliance?
Send us a DM - Nitamis Legal
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