Company Tax Calculator
Taxes are never fun, but avoiding them is worse. This calculator gives your company a fast, clear estimate of its tax bill based on the current Nigerian Tax laws. No more guessing games.
The best part: it tells you right away if your small business is tax-exempt. (Yes, really.)
Company Tax Calculator
Nigeria Tax Act 2025 • Accurate Estimates
How to Use the Nigeria Company Tax Calculator
Estimating corporate tax in Nigeria often feels like a guessing game that leads to expensive penalties or missed exemptions. If you calculate your tax manually, you might overlook the new 2025 thresholds or forget the 4% Development Levy. This Company Tax Calculator applies the 2025 Nigeria Tax Act rules instantly so you can project your net profits and stay compliant.
What the Calculator Does
This tool estimates the total tax liability for businesses registered in Nigeria. It differentiates between small and regular companies based on annual turnover.
Required Inputs:
- Company classification (Small or Regular).
- Total assessable profits before tax.
- Annual turnover (total revenue).
Provided Outputs:
- Company Income Tax (CIT) amount.
- Development Levy (4% of profits).
- Effective tax rate percentage.
- Final net profit after tax.
Key Features
- Turnover-Based Logic: Automatically applies a 0% rate for small businesses.
- Development Levy Math: Calculates the mandatory 4% levy for regular companies.
- Minimum Tax Alerts: Flags additional tax requirements for companies earning over ₦20B.
- Instant Profit Totals: Shows exactly what remains for reinvestment or dividends.
Prerequisites
- Have your profit and loss statement ready.
- Know your total revenue (turnover) for the fiscal year.
- Check if your business qualifies as a "Small Company" (under ₦50M turnover).
Step-by-Step Usage
- Select your company type: Click the 🏢 icon for Regular or the 🏪 icon for Small. The active choice turns blue.
- Enter total profits: Type your assessable profit in the "Total Profits Before Tax" box. Do not use commas.
- Enter annual turnover: Input your total revenue in the "Annual Turnover" field. This determines if large-company rules apply.
- Check for large-firm alerts: Look for the blue "Minimum Effective Tax Rate" box if your revenue exceeds ₦20B.
- Press Calculate: Click the green "Calculate Tax" button. The results will appear instantly below.
- Read the red and yellow cards: Review the specific amounts for Income Tax and Development Levy.
- Verify the net profit: Look at the green card to see your actual take-home earnings.
Why This Tool Matters
Manual tax math is risky. A single error in applying the 4% Development Levy can trigger an FIRS audit. This tool removes the math hurdle so you can focus on growth.
Who This Helps
| User Group | The Problem | The Benefit | Tip |
| Startup Founders | Unsure if they owe any tax. | Confirms 0% tax for small firms. | Even if you owe 0% tax, you must still file a return to stay compliant. |
| Finance Managers | Calculating the new 4% levy. | Automates the 2025 Nigeria Tax Act levy math. | Separate your assessable profit from gross profit before inputting data. |
| Large Corporations | Missing the 15% minimum rate. | Flags shortfalls for high-turnover firms. | Use the "Effective Rate" output to check against global minimum tax rules. |
Common Mistakes to Avoid
- Wrong Company Category: Selecting "Regular" for a business with ₦30M turnover. This results in an unnecessary 30% tax estimate. Always check your turnover first.
- Mixing Turnover and Profit: Entering revenue in the profit box. This creates a massive, incorrect tax bill. Profit is what remains after expenses.
- Ignoring the ₦20B Threshold: Large firms often forget the 15% minimum effective tax rule. Ensure your turnover is accurate to trigger the built-in warning.
Using Gross Revenue: Tax is paid on assessable profit, not total sales. Subtract your allowable expenses before entering your profit figures.