The federal government has announced that the corporate income tax rate will remain at 30 per cent for all large companies, under the revised Nigerian Tax Act set to take effect from January 2026.

According to the provisions of the updated law, small businesses with an annual turnover of less than N25 million will continue to enjoy a zero percent CIT rate, maintaining the government’s policy of tax relief for micro-enterprises.

The retention of the flat 30 per cent rate for larger firms signals continuity in Nigeria’s corporate tax regime, even as authorities seek to broaden the tax base and improve compliance, according to TheCables.

“Tax shall be levied, for each year of assessment in respect of total profits of every company, in the case of a small company, at 0%; and (b) any other company, at the rate of 30 percent from the commencement of this Act,” the document reads.

“Notwithstanding any provision of this Act or any other enactment, where, in any year of assessment, the effective tax rate of a company is less than 15%, such company shall recompute and pay an additional tax that makes its effective tax rate equal to 15%.

“The provisions of this section shall apply to a company that is a constituent entity of an MNE group, and (b) any other company with an aggregate turnover of N20,000,000,000 and above in the relevant year of assessment.”

Meanwhile, the federal government has scrapped the 10 per cent capital gains tax following the enactment of the NTA,which repeals the existing Capital Gains Tax Act.

It is reported that the 10 per cent capital gains tax is now combined with the CIT.

On June 4, 2024, the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, proposed a 5 per cent reduction in the corporate income tax rate.

Oyedele said the proposal aims to lower the CIT rate from 30 percent to 25 per cent in order to boost business growth and attract investment.