Built on Nigeria's current tax framework.
Nigeria's tax system was overhauled in 2025. Rather than hard-coding one law's name into our product, we built a tax engine designed around the framework itself — so when the rules change, AccountTaxNG changes with them.
Four pieces of law, one tax engine
In June 2025, Nigeria signed a package of tax reform laws that took effect 1 January 2026 — replacing decades of amendments to separate acts with a single, consolidated framework. This is what AccountTaxNG is built around.
Nigeria Tax Act, 2025
The substantive tax law — consolidates Companies Income Tax, Personal Income Tax (PAYE), Value Added Tax, Withholding Tax, and the new Development Levy into one act. This is where our VAT, CIT, WHT, and PAYE calculations come from.
Nigeria Tax Administration Act, 2025
Governs how tax is registered, assessed, filed, and collected across federal and state authorities — the procedural rules behind filing deadlines, penalties, and remittance schedules our platform tracks for you.
NRS (Establishment) Act, 2025
Establishes the Nigeria Revenue Service (NRS) as the federal tax authority, replacing the Federal Inland Revenue Service (FIRS). Every "NRS-ready" feature in AccountTaxNG refers to this body.
Applicable regulations & guidelines
Implementing regulations, public notices, and circulars issued by the NRS and State Internal Revenue Services as the new framework is rolled out. We track these as they're published and reflect them in the platform.
What's actually computed today
These are the exact rates and bands AccountTaxNG's tax engine applies right now, under the Nigeria Tax Act 2025.
Value Added Tax (VAT)
Nigeria Tax Act 2025
Company Income Tax (CIT)
Nigeria Tax Act 2025 — two-bracket structure
Professional services firms (legal, accounting, engineering, etc.) are always taxed as "large," regardless of turnover.
Development Levy
Replaces TETFund, IT Levy, NASENI & Police Trust Fund levies
Minimum Tax
Applies when computed CIT falls below this floor
Withholding Tax (WHT)
Deducted at source — the exact schedule applied to every qualifying expense
| Transaction Type | Company Rate | Individual Rate |
|---|---|---|
| Contracts (construction/supply) | 5% | 5% |
| Professional services | 5% | 10% |
| Management / technical services | 5% | 10% |
| Rent / lease | 10% | 10% |
| Dividends | 10% | 10% |
| Interest / royalties | 10% | 10% |
PAYE (Personal Income Tax)
Progressive annual bands, applied after the ₦800,000 tax-free amount
| Annual Income Band | Rate |
|---|---|
| First ₦800,000 | 0% |
| ₦800,000 – ₦3,000,000 | 15% |
| ₦3,000,000 – ₦12,000,000 | 18% |
| ₦12,000,000 – ₦25,000,000 | 21% |
| ₦25,000,000 – ₦50,000,000 | 23% |
| Above ₦50,000,000 | 25% |
Plus reliefs introduced under the Nigeria Tax Act 2025: rent relief (20% of annual rent, capped at ₦500,000), and full deductions for home loan interest and life insurance premiums.
How we keep this page — and your calculations — current
Tax law changes. Our approach doesn't: when the NRS or National Assembly amends a rate, band, or filing rule, we update the tax engine within 30 days and this page along with it. Nothing in AccountTaxNG's interface hard-codes a specific year or act by name — it references whatever the current framework is, so a future amendment doesn't leave stale claims sitting in the product.