No — under NTA 2025 §29, presumptive tax only applies where your income 'cannot be ascertained or records are not kept' well enough for a proper assessment. If you keep proper records, you're assessed under the ordinary direct-assessment mechanism instead: turnover less allowable business expenses (wholly and exclusively incurred in the production of the income, §20(1)) and any capital allowance, taxed at the same progressive rates as PAYE. Use the Self-Employed (Direct Assessment) calculator above to see which figure is lower for you.
Direct assessment taxes your actual business profit — turnover less allowable expenses (wholly and exclusively incurred in the production of the income) and any capital allowance claimed on qualifying equipment or vehicles — at the same progressive bands PAYE uses on employment income, from 0% on the first ₦800,000.00 up to 25% above ₦50,000,000.00.
Under NTA 2025 §20(1), a deductible expense must be wholly and exclusively incurred in the production of the income — not merely a business-related cost. §21 separately disallows capital expenditure, domestic/private expense, book depreciation, and several other categories; capital spend on equipment or vehicles is instead relieved through the capital allowance mechanism, not as an ordinary expense.
Yes. First Schedule Part I applies to individuals as well as companies — qualifying capital expenditure is relieved at a flat annual rate by asset class (10% for buildings/agricultural/mast/intangible/heavy-transport assets, 20% for plant/agricultural equipment/furniture/other equipment, 25% for motor vehicles/software/other capital expenditure), entered separately from your ordinary allowable expenses.
No — under NTA 2025 §29, presumptive tax only applies where your income 'cannot be ascertained or records are not kept' well enough for a proper assessment. If you keep proper records, you're assessed under the ordinary direct-assessment mechanism instead: turnover less allowable business expenses (wholly and exclusively incurred in the production of the income, §20(1)) and any capital allowance, taxed at the same progressive rates as PAYE. Use the Self-Employed (Direct Assessment) calculator above to see which figure is lower for you.
Yes, it's free with no account needed. Calculations run on your device and are never sent to a server — except the optional voice-input feature on amount fields, which sends your speech to your browser's own speech-recognition service to convert it to text.
No — for guidance only, not tax advice.
Sourced from the Nigeria Tax Act 2025 — see full citations →