Yearly tax filings submitted to FIRS or state IRS summarizing income, deductions, and tax liability for a tax year.

Total income from all sources that is subject to tax, before any deductions or reliefs are applied.

Corporate Affairs Commission. The government body responsible for registering businesses in Nigeria. CAC registration is required before you can get a TIN.

A 10% tax on profits from selling assets like property, stocks, or business assets. Applies when you dispose of chargeable assets at a gain.

Company Income Tax. Tax paid by registered companies on their profits. Rates: 0% for small (≤₦25M turnover), 20% for medium (₦25M-₦100M), 30% for large (>₦100M).

A statutory deduction of ₦200,000 or 1% of gross income (whichever is higher) plus 20% of gross income. This is automatically applied to reduce taxable income.

A fixed annual levy of ₦600 payable by individuals to state governments for development purposes.

Electronic invoicing system being introduced by FIRS to track transactions and ensure VAT compliance. Will be mandatory for VAT-registered businesses.

The actual percentage of your total income paid as tax, after accounting for the graduated tax brackets. Always lower than your marginal rate due to the progressive system.

Federal Capital Territory Internal Revenue Service. The tax authority for Abuja and its environs, responsible for collecting taxes from FCT residents.

Federal Inland Revenue Service. Nigeria's federal tax authority responsible for collecting federal taxes including CIT, VAT, WHT on federal transactions, and petroleum profits tax.

FIRS Mobile Billing System. A digital platform for taxpayers to file returns, make payments, and access tax services online.

VAT you pay when purchasing goods and services for your business. This can be offset against your Output VAT when calculating net VAT payable.

Lagos State Internal Revenue Service. The tax authority for Lagos State, collecting personal income tax, business premises levy, and other state taxes.

The tax rate applied to your last naira of income. In Nigeria's 2026 brackets, rates range from 0% to 25% depending on income level.

National Agency for Science and Engineering Infrastructure Levy. A 0.25% levy on profits before tax for companies engaged in banking, mobile telecoms, ICT, etc.

National Housing Fund. A 2.5% contribution from employees' basic salary toward housing development. Mandatory for employees earning ₦3,000+ per month.

National Health Insurance Scheme. A health insurance contribution, typically 5% of basic salary for employed individuals. Provides healthcare coverage.

National Revenue Service. A proposed unified tax authority to replace FIRS and streamline tax collection across Nigeria (part of ongoing tax reform discussions).

VAT you charge customers when selling goods or services. This is collected on behalf of the government and remitted after deducting Input VAT.

Pay As You Earn. A system where employers deduct income tax from employees' salaries before payment. The tax is remitted monthly to the relevant tax authority.

Mandatory 8% employee contribution (matched by 10% employer) to a pension fund administrator (PFA). Tax-deductible and provides retirement savings.

Personal Income Tax. Tax paid by individuals on their income. Under the 2026 brackets: 0% up to ₦800K, then 15%, 18%, 21%, 23%, and 25% on higher incomes.

A tax relief allowing you to deduct a portion of rent paid from your taxable income. Under 2026 rules: 20% of annual rent, capped at ₦500,000.

The process where taxpayers calculate and declare their own tax liability, file returns, and make payments. Standard for self-employed and business owners.

State Internal Revenue Service. Each of Nigeria's 36 states has an IRS responsible for collecting personal income tax and other state taxes.

A document proving you've paid your taxes. Required for government contracts, loan applications, and various regulatory approvals.

The amount of income exempt from tax. For 2026, the first ₦800,000 of taxable income is tax-free under the Nigeria Tax Act 2025.

Your income after subtracting allowable deductions (pension, NHF, NHIS, rent relief). This is the amount on which tax is calculated.

Tertiary Education Tax. A 2.5% tax on the assessable profit of all companies registered in Nigeria, funding tertiary education.

Tax Identification Number. A unique identifier assigned to every taxpayer in Nigeria. Required for tax filings, business transactions, and opening corporate bank accounts.

Value Added Tax. A 7.5% consumption tax charged on goods and services. Businesses with turnover above ₦50 million must register and collect VAT.

Withholding Tax. Tax deducted at source from payments like contracts, rent, dividends, and professional fees. Rates vary: 5-10% depending on transaction type.