The Act preserves the 0 percent CIT rate for small firms, defined as those with annual turnover below ₦25 million, while confirming a flat 30 percent rate for all other companies.
“Tax shall be levied… at 0% for small companies and 30% for any other company from the commencement of this Act,” the law states.
A major shift in the law is the introduction of a minimum effective tax rule: any large company — particularly members of multinational enterprise (MNE) groups — with an annual turnover of ₦20 billion or more and an effective tax rate below 15 percent in any year will pay an additional levy to meet that threshold.
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