The portion of a company's profit that is subject to tax after making necessary adjustments to the accounting profit.

A tax levied on the profit realized from the sale of a non-inventory asset, such as crypto, stocks, or real estate. Currently 10% in Nigeria.

The amount of income upon which tax is actually calculated, arrived at after deducting all allowable reliefs and exemptions from the gross income.

Tax imposed on the profit of companies operating in Nigeria. The rate varies based on company size: 0% for small, 20% for medium, and 30% for large companies.

A tax relief available to all employees, calculated as the higher of ₦200,000 or 1% of Gross Income, plus 20% of Gross Income. It reduces taxable income.

A flat levy usually of ₦100 charged by state governments on taxable individuals for development purposes.

A method of collecting Personal Income Tax from self-employed individuals, informal sector workers, and high-net-worth individuals.

A distribution of profits by a corporation to its shareholders. Dividends are subject to Withholding Tax (WHT).

Also known as the Electronic Money Transfer Levy (EMTL), it is a stamp duty charge on electronic deposits.

Investment income on which Withholding Tax has already been deducted at source. It is usually not subject to further tax.

The total income earned before any deductions or taxes are removed. Includes basic salary, housing, transport, bonuses, and other allowances.

The umbrella body tasked with reducing the incidence of double taxation and ensuring uniformity in tax administration across the country.

A tax payable by companies that have no taxable profit or whose tax payable is less than the minimum tax stipulated by law.

A mandatory contribution of 2.5% of basic salary by employees earning above the minimum wage, utilized for the provision of affordable housing.

A contribution system for health insurance. Employee contributions are tax-deductible.

Formerly the Federal Inland Revenue Service (FIRS), this is the federal agency responsible for assessing, collecting, and accounting for taxes accruing to the Federal Government of Nigeria.

A method of collecting Personal Income Tax from employees, where the employer deducts the tax at source and remits it to the state tax authority.

A mandatory deduction of at least 8% of an employee's emoluments towards their retirement savings account.

Tax imposed by the state Internal Revenue Service on the income of individuals, trustees, and executors.

A rule stating that a taxpayer is liable to pay tax to the tax authority of the state where they reside for 183 days or more in a 12-month period.

Tax levied on legal documents, instruments, and electronic receipts.

A document issued by the tax authority certifying that an individual or company has paid all taxes due for the preceding three years.

A unique number assigned to taxpayers (individuals and companies) for identification and tax administration purposes.

A tax of 3% charged on the assessable profit of all companies registered in Nigeria.

A consumption tax of 7.5% placed on a product whenever value is added at each stage of the supply chain.

An advance payment of income tax deducted at source from payments made to a beneficiary. It is not a distinct tax but a collection mechanism.