AREA TAX MAN

01/06/2026

YOU CAN REASONABLY CALCULATE YOUR PERSONAL INCOME TAX

Do you want to know that, you can reasonably calculate your Personal Income Tax? Yes, you can.
Click on the link below to access the Personal Income Tax self-calculator:
https://fiscalreforms.ng/index.php/pit-calculator

What are the details required to do your calculation.
1) Your total income for the year
2) Your allowable deductions & reliefs as stated below:
(a) Pension contribution to Pension Fund Administrator (PFA)
(b) National Health Insurance Scheme
(c) National Housing Fund contributions
(d) Interest on loans for owner-occupied residential housing
(e) Life insurance or annuity premiums
(f) Rent relief – 20% of annual rent (up to N500,000).

This personal income tax calculator simulates the tax rates you'd be subject to under our proposed Nigeria Tax bill, as well as the current tax rates as stipulated by law, allowing you to compare and understand the potential impact on your income.

01/06/2026

PRE-COMMENCEMENT EXPENSES AND THE SIX YEARS WINDOW

Prior to the commencement of business, a company usually incurs some expenses. Example of such expenses are the cost of registering the company, fees paid to lawyers and accountants, market research expenses, cost of printing company's books/documents, etc.

According to Section 20 (1)(j) of the Nigeria Tax Act (NTA), any expenses incurred within six (6) years prior to commencement of business which would have been deductible if incurred after commencement of business, shall be deemed to have been incurred on the first day of commencing the trade or business.

The import of the above section is that, pre-commencement expenses (costs incurred up to six years before starting business operations) are now expressly tax-deductible.

01/06/2026

WELCOME TO THE MONTH OF JUNE - AN IMPORTANT TAX FILING MONTH

To many companies, June is not just a another usual month, it is a month that comes with tax responsibilities, of which failure to comply is met with with severe costs - penalty and interest.

Section 11(1) of the Nigeria Tax Administration Act (NTAA) states that, every company, including company granted exemption from incorporation, whether or not it is liable to tax under the Nigeria Tax Act, 2025 or any other tax law, for a year of assessment, with or without notice from the Service, shall file a self-assessment return with the Service in the prescribed for at least once a year.

Subsection 5 of Section 11 went further to state that, subject to this Act, or any tax law or regulation, the time of filing returns shall be -

(a) in the case of a company that has been in business for more than 18 months, not more than six months after the end of its accounting year.

It follows therefore that, for companies with accounting year end of 31 December 2025, they are to file annual returns on or before 30 June, 2026.

Hope your company is set to meet with the 30 June tax filing deadline?

Happy New Month.

31/05/2026

A SMALL COMPANY FOR TAX PURPOSES

Do you know that, the term Small Company has been given a new definition in Nigeria's Tax Laws? Here is it.

A Small Company is any company with annual turnover that is less than N100m and a total asset not exceeding N250m.

Small companies enjoy the follow tax exemptions in Nigeria:

1) They are taxed at zero (0) percent (%) for Companies Income Tax (CIT);

2) They are exempted from paying Development Levy;

3) They are exempted from charging and filing Value Added Tax (VAT):

4) They are exempted from paying Capital Gains Tax (CGT).

Please note that, businesses providing professional services (such s legal, accounting and consulting firms) are not classified as small companies even if they have a turnover less than N100m.

31/05/2026

DEVELOPMENT LEVY

Do you know that, Development Levy, which is 4% of a company's Assessable Profit, replaced four different taxes in the old tax laws? The four (4) taxes replaced by Development Levy are: (1) Tertiary Education Tax (EDT), (2) National Information Technology Development Agency (NITDA) Levy, (3) National Agency for Science and Engineering Infrastructure (NASENI) Levy and (4) Nigeria Police Trust Fund (NPTF) Levy.

Hitherto, EDT was 3% of Assessable Profit, NITDA Levy was % of Profit Before Tax, NASENI Levy was 0.25% and NPTF Levy was 0.005% of Net Profit.

Impact of the Changes on Companies

The tax payable under the new tax regime is lower and the burden of having to comply with a retinue of different taxes has been expunged - just calculate Development Levy and pay to the Nigeria Revenue Service (NRS).