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Tax Dictionary 2026

NRS (Nigeria Revenue Service)

The new name for the FIRS. This is the federal government agency that collects taxes in Nigeria.

TIN (Tax Identification Number)

A unique number given to you or your company. You need a TIN to open a corporate bank account or apply for government loans.

JTB (Joint Tax Board)

The group that ensures you are not taxed twice by both the Federal and State governments.

PAYE (Pay-As-You-Earn)

The tax deducted directly from your salary by your employer every month. It is the most common form of personal income tax.

Gross Income

Your total salary including all allowances and bonuses before any tax or deductions are removed.

Taxable Income

The portion of your money that the government actually taxes. It is your Gross Income minus your Tax Reliefs.

CRA (Consolidated Relief)

The specific amount of your salary that is tax-free. Covers basic needs like rent and transport so you pay less tax.

Turnover

Total sales before expenses. Under the new law, if your turnover is under ₦100 Million, you may be exempt from CIT.

CIT (Company Income Tax)

A tax charged on the profits of a company. Small businesses (SMEs) are currently exempt from paying this.

Development Levy

A new, single tax for companies that replaces the old Education Tax and IT Levy to simplify payment.

Withholding Tax (WHT)

An advance payment of tax. When a customer pays you, they keep a small percentage (5-10%) and send it to the NRS for you.

VAT (Value Added Tax)

7.5% consumption tax on goods. Essentials like Food, Rent, Public Transport, and Pharmaceuticals are 0% (Exempt).

Tax Clearance (TCC)

An official document proving you paid taxes for the last 3 years. Mandatory for visas, contracts, and political office.

Filing Returns

The process of officially reporting your income to the NRS online, even if you do not owe any tax money.

NRS (Nigeria Revenue Service)

The new name for the FIRS. This is the federal government agency that collects taxes in Nigeria.

TIN (Tax Identification Number)

A unique number given to you or your company. You need a TIN to open a corporate bank account or apply for government loans.

JTB (Joint Tax Board)

The group that ensures you are not taxed twice by both the Federal and State governments.

PAYE (Pay-As-You-Earn)

The tax deducted directly from your salary by your employer every month. It is the most common form of personal income tax.

Gross Income

Your total salary including all allowances and bonuses before any tax or deductions are removed.

Taxable Income

The portion of your money that the government actually taxes. It is your Gross Income minus your Tax Reliefs.

CRA (Consolidated Relief)

The specific amount of your salary that is tax-free. Covers basic needs like rent and transport so you pay less tax.

Turnover

Total sales before expenses. Under the new law, if your turnover is under ₦100 Million, you may be exempt from CIT.

CIT (Company Income Tax)

A tax charged on the profits of a company. Small businesses (SMEs) are currently exempt from paying this.

Development Levy

A new, single tax for companies that replaces the old Education Tax and IT Levy to simplify payment.

Withholding Tax (WHT)

An advance payment of tax. When a customer pays you, they keep a small percentage (5-10%) and send it to the NRS for you.

VAT (Value Added Tax)

7.5% consumption tax on goods. Essentials like Food, Rent, Public Transport, and Pharmaceuticals are 0% (Exempt).

Tax Clearance (TCC)

An official document proving you paid taxes for the last 3 years. Mandatory for visas, contracts, and political office.

Filing Returns

The process of officially reporting your income to the NRS online, even if you do not owe any tax money.

Calculator Hub

Business / Investments

Company Income Tax (CIT)

Determine Company Income Tax (CIT) and Education Tax (TET) for Small, Medium, and Large companies.

Withholding Tax WHT

Quickly look up Withholding Tax rates for various services and calculate the net payment amount.

Enter an amount to see the calculation

WHT Rates Reference22 Types

Payment TypeCatRate
Dividends from Nigerian companiesInvestment Income10.0%
Interest payments to individualsInvestment Income10.0%
Interest payments to companiesInvestment Income10.0%
Rent paid to individualsProperty Income10.0%
Rent paid to companiesProperty Income10.0%
Royalty paymentsIntellectual Property10.0%
Commission paid to individualsService Income5.0%
Commission paid to companiesService Income10.0%
Professional/consultancy feesService Income5.0%
Management feesService Income10.0%
Technical feesService Income10.0%
Directors' feesService Income10.0%
Contract payments to individualsContract Services5.0%
Contract payments to companiesContract Services10.0%
Supply of goodsTrading5.0%
Hotel accommodationHospitality10.0%
Transport and logistics servicesTransport5.0%
Cleaning and maintenance servicesServices5.0%
Catering servicesServices5.0%
Security servicesServices5.0%
Insurance commissionInsurance10.0%
Lottery, gaming, and betting winningsWinnings20.0%

Capital Gains Tax (CGT)

Compute Capital Gains Tax (CGT) on asset sales, including property and shares, with applicable reliefs.

Specialized / Freelances / Informal

Self-Employed Tax Calculator

Calculate Personal Income Tax for business owners, freelancers, and contractors using Direct Assessment.

Japa vs Stay Tax Calculator

Determine tax liability on foreign income for residents, considering double taxation treaties.

Individuals / Employees

Nigeria PAYE Calculator

Calculate your monthly PAYE tax liability under current PITA 2011 rules and compare with proposed NTA 2025 reforms.

MonthlyAnnual
Contribute to NHF? (2.5% of Basic)

Gross ↔ Net Converter

Convert Gross Salary to Net Pay and vice-versa. Ideal for negotiating offer letters.

My Naija Salary Planner

Structure your salary to minimize tax liability legally. Add reliefs like Life Assurance to see how it boosts your net pay.

Pension (8%)
NHF (2.5% of Basic)

Am I Being Cheated

Audit past tax payments to ensure compliance and detect over/underpayments.

The New Tax Law Explained

(Salary, VAT & SMEs)

Salary & Personal Income Tax (PAYE) Updates

Is there a Tax Exemption for salaries under ₦70,000 or ₦800,000?

Will my take-home pay increase under the new tax law?

Small Business & SME Tax Exemptions

Do small businesses pay Company Income Tax (CIT) if turnover is under ₦100 Million?

Do I still need to file tax returns if I am exempt?

VAT Rate & Cost of Living

Did the VAT rate increase to 10% or stay at 7.5%?

Are rent and food exempt from VAT in Nigeria?

Digital Economy

I earn my money in Dollars/USDT. Does the Nigerian government have business with it?

Is Crypto finally taxed in Nigeria?

Which exchange rate will they use? Black Market or Official?

Will banks report my P2P transactions to NRS?

General Tax Registration & Filing

Is a Tax Identification Number (TIN) mandatory for individuals in Nigeria?

Do I need to file tax returns if my business made a loss or zero profit?

Personal Income Tax (PIT) for Hustlers

How do freelancers and self-employed people pay tax in Nigeria?

Do I pay Income Tax to the State where I work or the State where I live?

Withholding Tax (WHT) – The 'Deductions'

Is Withholding Tax (WHT) a separate or extra tax in Nigeria?

How do I use Withholding Tax Credit Notes to reduce my tax liability?

Can I get a cash refund for excess Withholding Tax payments?

The TAXINLAW Squad

Tax Life, Simplified

01. Payoff

HELPING YOU TO CONFIDENTLY DO IT

02. Trust

HOLDING YOUR HAND THROUGH TOUGH TIMES

03. Learn

Educating you so you feel like a genius

04. Panic
?!

Clearing confusing, installing clarity

05. Victory

Help businesses with Tinub's compliance

The Master-plan

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Tax
Assistant

Helping you pay your tax.

AI-driven calculations that prepare your returns so you don't have to think.

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Auto
Remittance

Paying the tax for you.

Direct debit integration. We take the money and face the FIRS for you.

Coming Soon

Dedicated
System

Custom for each business.

Tailored tax and management workflows designed specifically for your industry needs.