Introduction:
Small companies are now exempt from Companies Income Tax (CIT), Capital Gains Tax (CGT), and the newly introduced Development Levy. Under the revised provisions, a small company is defined as one with an annual gross turnover of up to ₦100 million (previously ₦25 million) and total fixed assets not exceeding ₦250 million.
The new Tax Act raises the Capital Gains Tax (CGT) rate for companies from 10% to 30%, thereby aligning it with the Companies Income Tax (CIT) rate. This adjustment eliminates potential tax arbitrage opportunities that may have previously arisen from differentiating chargeable gains and trading income. For individuals, capital gains will now be taxed according to their applicable personal income tax rate, based on the progressive tax bands
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Unpacking the Nigeria Tax Act, 2025 – LEGAL IDEAS FORUM INTERNATIONAL 2026 Tax Law Convention