Sources

Every rate, threshold, and rule below is a section number in one of two gazetted Acts — the Nigeria Tax Act, 2025 (No. 7) and the Nigeria Tax Administration Act, 2025 (No. 5), not a summary of someone else's summary of it. Nothing here is added beyond what's already cited in TaxLane's own calculator code.

PAYE

  • New-regime (2026) termination-benefit treatment

    The excess of a termination benefit over its relief cap is aggregated into ordinary taxable income and taxed at the same progressive PAYE bands as everything else — not a separate flat-rate charge.

    NTA 2025 §50(2)/§28(2)(a)(v)/§58

  • Pre-2026 (old-regime) termination-benefit treatment

    Old regime only: a termination benefit's excess over its (lower, ₦10,000,000) relief cap is a flat 10% capital gain, never PAYE-banded.

    CGTA §36(2)

    Last verified against the gazetted Act text: 12 July 2026.

VAT

  • Zero-rated and VAT-exempt goods/services

    Basic food, medicine, education, exports, and the other listed categories attract no VAT at all.

    NTA 2025 §186/§187

    Last verified against the gazetted Act text: 11 August 2026.

  • Small-business VAT exemption

    Turnover not exceeding ₦50,000,000 AND fixed assets under ₦250,000,000 — both conditions required. Professional-services businesses are excluded outright, regardless of turnover.

    NTAA §22(4) / §147

Presumptive Tax

  • Turnover floor and default rate

    Turnover under ₦12,000,000 owes no presumptive tax. At or above that floor, 1% of turnover is owed by default, with an option to opt out and file under full self-assessment instead.

    NTA §29 / Nigeria Presumptive Tax Regulations 2026

CIT

  • Small-company definition

    Gross turnover not exceeding ₦50,000,000/year AND fixed assets not exceeding ₦250,000,000 — both conditions required. Professional-services businesses are excluded regardless of turnover.

    NTA §202

  • Small-company CIT rate

    0% — a full annual CIT return is still required even though nothing is owed.

    NTA §56

  • Standard (non-small-company) CIT rate

    30% of total profits, for any company that doesn't qualify as a small company.

    NTA §56

  • Development Levy

    4% of assessable profits — a distinct, earlier-stage base than "taxable profit" — for any company other than a small company or a non-resident company.

    NTA §59(1)

  • Large-company/multinational-group minimum effective tax rate

    A top-up payment, not a replacement figure, triggered by ₦20,000,000,000-or-more domestic turnover or membership of a multinational-enterprise group of any size.

    NTA §57

WHT

  • Rates by transaction type

    5% professional/consultancy fees, 5% technical services, 10% rent, 2% general contracts/goods supply — identical for corporate and non-corporate resident recipients.

    Deduction of Tax at Source (Withholding) Regulations 2024, First Schedule

  • Remittance deadline

    Due the 21st of the month following the month of payment; missing it triggers a failure-to-remit penalty.

    NTAA 2025 §107(1)

    Last verified against the gazetted Act text: 2 August 2026.

Payroll

TaxLane's bulk Payroll calculator applies the same 2026 PAYE bands to each employee individually — see PAYE's citations above.

  • New-regime (2026) termination-benefit treatment

    The excess of a termination benefit over its relief cap is aggregated into ordinary taxable income and taxed at the same progressive PAYE bands as everything else — not a separate flat-rate charge.

    NTA 2025 §50(2)/§28(2)(a)(v)/§58

  • Pre-2026 (old-regime) termination-benefit treatment

    Old regime only: a termination benefit's excess over its (lower, ₦10,000,000) relief cap is a flat 10% capital gain, never PAYE-banded.

    CGTA §36(2)

    Last verified against the gazetted Act text: 12 July 2026.

Employer Cost

  • Employer pension and NHIS contributions

    10% of pensionable pay (pension) and 10% of basic salary (NHIS).

    Pension Reform Act 2014

  • Employer NSITF contribution

    1% of gross pay — no headcount or turnover threshold; applies to every employer.

    Employees' Compensation Act 2010 §33/§73

    Last verified against the gazetted Act text: 22 July 2026.

  • Employer ITF contribution

    1% of gross pay. A reported 5-or-more-staff/₦50,000,000-turnover applicability threshold is not enforced here — this calculator has no employee-count or turnover input to check it against.

    LFN 2004 §6

    Last verified against the gazetted Act text: 22 July 2026.

  • Employer's annual return of emoluments (Form H1)

    File with each State IRS where you have resident staff by 31 January. Late filing carries a ₦100,000 penalty for the first month plus ₦50,000 for each month it continues, per state.

    NTAA 2025 §14(1) (deadline) / §101 (penalty)

CGT

  • Principal private residence exemption

    Property disposals only — can only be claimed once in a lifetime.

    §51

    Last verified against the gazetted Act text: 21 July 2026.

  • Full reinvestment into Nigerian shares exemption

    Share disposals only, and only when the full proceeds are reinvested.

    §34(1)(a)(iii)

    Last verified against the gazetted Act text: 21 July 2026.

  • Regulated securities-lending transfer exemption

    Share disposals only.

    §34(1)(a)(ii)

    Last verified against the gazetted Act text: 21 July 2026.

  • Small-share-disposal exemption

    Proceeds under ₦150,000,000 AND gain not exceeding ₦10,000,000 — both conditions required.

    §34(1)(a)(i)

    Last verified against the gazetted Act text: 21 July 2026.

  • Company disposals

    The gain is folded into total profits and taxed at the company's existing CIT rate — there's no separate company CGT rate.

    §27(1)/§56

    Last verified against the gazetted Act text: 21 July 2026.

  • Individual disposals

    The gain is aggregated into total taxable income, and the whole aggregate is run through the same progressive PAYE bands once.

    §28(2)(a)(v)/§58

    Last verified against the gazetted Act text: 21 July 2026.

Stamp Duty

  • Ad valorem rates by instrument type

    Tenancy/lease 0.78%, property conveyance 1.5%, share capital 0.75%, loan capital 0.125%, marketable securities 0.225%.

    NTA 2025 Ninth Schedule

    Last verified against the gazetted Act text: 23 July 2026.

  • Tenancy/lease exemption ceiling

    No duty at all when the annual value is under ₦10,000,000.

    NTA 2025 §135

    Last verified against the gazetted Act text: 23 July 2026.

  • Electronic transfer duty

    A fixed ₦50 duty on transfers/receipts of ₦10,000 or more; none below that threshold.

    Ninth Schedule item 48 / §185(i)

    Last verified against the gazetted Act text: 23 July 2026.

  • Stamping window

    Instruments must be stamped within 30 days after execution.

    §126

    Last verified against the gazetted Act text: 23 July 2026.

  • Tenancy/lease ad valorem duty

    Tenancy/lease agreements attract ad valorem duty under the Ninth Schedule.

    NTA 2025 §124

    Last verified against the gazetted Act text: 23 July 2026.

  • Administering authority

    Genuinely disputed between the Nigeria Revenue Service (NRS) and State Internal Revenue Services, with no per-instrument carve-up in the gazetted text — confirm which authority to pay before paying.

    NTAA 2025 §3(1)(b)(ii)/§87(1)

    Last verified against the gazetted Act text: 23 July 2026.