Major Tax Changes Every Nigerian Business Should Know

 

As part of Nigeria’s recent tax reforms, the Federal Government has introduced two major updates that directly affect businesses — especially small companies.

At Baha’s Books, we believe every entrepreneur and business owner should stay informed to remain compliant and make smarter financial decisions.

🟢 1. Increased Exemption Threshold for Small Companies

Small companies are now exempt from Companies Income Tax (CIT), Capital Gains Tax (CGT), and the newly introduced Development Levy — provided they meet these criteria:

  • Annual gross turnover of up to ₦100 million (previously ₦25 million), and

  • Total fixed assets not exceeding ₦250 million

This is a big relief for small businesses. It allows them to retain more profits, reinvest in growth, and avoid heavy tax compliance burdens in their early stages.

🟡 2. Increased Capital Gains Tax (CGT) Rate

The Capital Gains Tax rate for companies has been increased from 10% to 30%.

This aligns the CGT with the Companies Income Tax rate and helps reduce tax loopholes that previously allowed companies to reclassify trading income as capital gains to enjoy lower rates.

For individuals, capital gains will now be taxed at their applicable personal income tax rate based on their income band.

⚡ What This Means for Your Business

These changes signal a more structured and fair tax environment. While small companies can now breathe easier, larger companies must review their asset sales and capital planning strategies to avoid higher tax exposure.

💼 Stay Compliant With Baha’s Books

At Baha’s Books, we help businesses and entrepreneurs stay on top of tax laws, automate their bookkeeping, and maintain clean financial records.

Stay informed. Stay compliant. Stay profitable.

📩 Contact Us 

bahasbooks.com

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