New Tax Law to Exempt Small Companies from Company Income Tax Starting Jan 1st!

In a major boost for the Nigerian small business sector, the Federal Inland Revenue Service (FIRS) has confirmed that small companies will be exempt from paying Company Income Tax (CIT) under the new Nigeria Tax Act (NTA), which is set to be implemented in just 19 days.

The FIRS made this announcement via its official Twitter handle, @FIRSNigeria, as part of its “Know Your Tax Laws” campaign countdown to the new year.

The agency shared a graphic highlighting Section 56 of the Nigeria Tax Act (NTA), which states:

“Tax shall be levied, for each year of assessment, in respect of the total profit of a small company at zero percent.”

Official Confirmation from FIRS

The FIRS tweet, posted with the graphic below, serves as a direct reminder to businesses to prepare for the upcoming changes.

What This Means for Your Business

This provision is a game-changer for startups and small and medium-sized enterprises (SMEs). By effectively setting the CIT rate to zero, the government is aiming to reduce the financial burden on smaller businesses, allowing them to reinvest their profits into growth, expansion, and job creation.

It is important for business owners to consult with a tax professional to confirm their classification as a “small company” under the new Act and understand any other associated compliance requirements, such as filing annual returns, even with a zero tax liability.

With only 19 days left until the implementation of these new tax laws, itax.ng urges all business owners to stay informed and get prepared for the new fiscal landscape in 2026.