Self-Employed Direct Assessment Tax Calculator Nigeria

No — under NTA 2025 §29, presumptive tax only apply where dem no fit ascertain your income or dem no keep record well enough for proper assessment. If you dey keep correct record, dem go assess you under di ordinary direct-assessment mechanism instead: turnover minus allowable business expenses (wholly and exclusively incurred in the production of the income, §20(1)) and any capital allowance, tax am for di same progressive rates wey PAYE use. Use di Self-Employed (Direct Assessment) calculator up here see which figure lower pass for you.

How direct assessment dey work

Direct assessment go tax your real business profit — turnover minus allowable expenses (wholly and exclusively incurred in the production of the income) and any capital allowance wey you claim for qualifying equipment or vehicle — for di same progressive bands wey PAYE use for employment income, from 0% for di first ₦800,000.00 up to 25% above ₦50,000,000.00.

Frequently asked questions

I dey self-employed with correct record — I go still pay di flat 1% presumptive tax?

No — under NTA 2025 §29, presumptive tax only apply where dem no fit ascertain your income or dem no keep record well enough for proper assessment. If you dey keep correct record, dem go assess you under di ordinary direct-assessment mechanism instead: turnover minus allowable business expenses (wey dem spend wholly and exclusively to produce di income, §20(1)) and any capital allowance, tax am for di same progressive rates wey PAYE use. Use di Self-Employed (Direct Assessment) calculator up here see which figure lower pass for you.

Wetin count as "allowable business expense" for direct assessment?

Under NTA 2025 §20(1), any expense wey you wan deduct must be wholly and exclusively incurred to produce di income — e no fit just be any business-related cost. §21 separately disallow capital expenditure, domestic/private expense, book depreciation, and plenty other categories; any capital spend for equipment or vehicle go instead relief through di capital allowance mechanism, e no be ordinary expense.

I fit claim capital allowance for equipment or vehicle wey I buy for my business?

Yes. First Schedule Part I apply to individual dem as well as company dem — qualifying capital expenditure go relief for 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), enter am separate from your ordinary allowable expenses.

TaxLane free? E dey store my data?

Yes, e free, no account dey needed. Di calculations dey run for your own phone or computer, dem no dey send am go any server.

Na official tax advice be dis?

No — na just guide, e no be tax advice.