Income Tax Tables in Nigeria 2024

The Federal Inland Revenue Service (FIRS) is the tax authority in Nigeria, tasked with assessing, collecting and accounting for revenue accruing in the Nigerian Federation, and administering relevant tax laws. Operating the TaxPro Max system, FIRS facilitates various tax-related activities including registration, filing and payment of taxes as well as the issuance of tax clearance certificates. Taxpayers are required to register with the relevant tax office and obtain a Taxpayer Identification Number (TIN).

To ensure greater coherence of corporate tax at the global level, among other objectives, Nigeria is a member of a group of jurisdictions committed to the implementation of minimum standards of the base erosion and profit shifting (BEPS) related measures.

The Companies Income Tax Act provides income tax tables and comprehensive guides to support individuals as well as businesses and organizations. 

How do you calculate income tax? Familiarizing yourself with these tax tables which identify applicable tax brackets and tax rates is essential for effective tax planning and to stay compliant with Nigerian tax laws. Different tax brackets may apply depending on the business structure and vehicle used. 

Here you will learn more about:

• headline tax rates 
• personal income tax (PIT) rates 
• corporate income tax (CIT) rates
• capital gains tax rates
• withholding tax rates 
• value-added tax rates

Headline Tax Rates in Nigeria

Personal Income Tax (PIT) Tables in Nigeria 2024

Individuals are required to file a tax return for any income received from sources such as wages and allowances, investment income, capital gains (as a result of the sale of assets), and income from self-employment. Other income sources such as royalties and winnings must also be accounted for.

Individual employees who earn below the national minimum wage (NGN 30,000) are not liable for tax or deductions of monthly Pay As You Earn contributions.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Nigeria 2024

All businesses that operate in Nigeria are required to file their annual tax returns. These taxes may include corporate income tax, value-added tax, Pay-As-You-Earn tax (deduction of income tax from an employee’s wages), capital gains tax, education tax, the National Housing Fund, and stamp duty. Specified companies may also be required to pay the National Information Technology Levy.

Corporate Income Tax Due Dates

Capital Gains Tax in Nigeria

Withholding Tax Rates in Nigeria

In Nigeria, there is no distinction between withholding tax (WHT) rates for resident individuals or companies, and non-resident individuals and companies.

Value-Added Tax Rates in Nigeria

Zero rated value-added tax (VAT) applies to goods and services purchased by diplomats, and goods and services purchased for use in humanitarian donor-funded projects. Certain goods and services are exempt from the zero rated VAT.