Under the 2025 Act, small companies are exempt from Corporate Income Tax (CIT). To qualify as a small company, the business must meet two criteria:
- Annual turnover is less than ₦100 million.
- Total assets are below ₦250 million.
This exemption aims to support micro, small, and medium enterprises (MSMEs) by easing their tax burden and encouraging formal business operations.
Hypothetical Example:
If Chika runs a tailoring business that made ₦75 million in revenue in 2025 and has assets worth ₦120 million, she qualifies for CIT exemption under the new law. However, if her asset base grows to ₦300 million, she becomes liable for CIT regardless of her revenue.
