Corporate Tax · 5 min read · Updated 13 October 2026
Small company tax exemption in Nigeria: the ₦100 million test
The Nigeria Tax Act 2025 gives qualifying small companies a 0% companies income tax rate and exempts them from the Development Levy. Qualifying is not automatic — you need to meet every condition and still file a return.
The qualifying conditions
A company is treated as a small company for the year only when all of these apply:
- Gross turnover of ₦100,000,000 or less.
- Total fixed assets of ₦250,000,000 or less.
- It does not carry on professional services — professional service businesses are excluded regardless of size.
What the exemption covers
A qualifying small company pays companies income tax at 0% and is not liable to the 4% Development Levy. Companies that do not qualify pay companies income tax at 30% plus the Development Levy on assessable profits.
The exemption does not remove filing duties. The self-assessment return is still due within six months of the accounting year end, and late filing attracts penalties.
Common mistakes
- Testing turnover net of returns or VAT inconsistently from year to year.
- Ignoring fixed assets held at cost when checking the ₦250m ceiling.
- Assuming a consultancy or professional firm qualifies because turnover is small.
- Not filing because no tax is payable.
This guide is general information under the Nigeria Tax Act 2025 and Nigeria Tax Administration Act 2025, not tax advice. Confirm current rules with NRS or a qualified adviser.
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