Nigerian tax glossary

The short list of terms you will keep bumping into when you deal with tax in Nigeria. Each one gets a plain-English definition, grounded in the Nigeria Tax Act 2025. No jargon for its own sake.

Last updated 14 July 2026 · Maintained by MiTax Tax Team

• Tax ID
• PIT
• PAYE
• VAT
• WHT
• CGT
• CIT
• TCC
• NRS / Rev360
• Development Levy
• E-invoicing / MBS
• SEP
• Stamp Duty
• Presumptive Tax

TIN / Tax ID

The single number the Nigeria Revenue Service (NRS) uses to identify you as a taxpayer. Individuals get theirs from their National Identification Number (NIN); companies from their CAC registration and RC number. Under NTA 2025 the standard is a new 13-digit Tax ID, and older 10-digit TINs should be migrated. See the guide on how to get a Tax ID.

Personal Income TaxPIT

The tax individuals pay on their income, whether from salary, self-employment, or investments. Under NTA 2025 it is charged on bands running from 0% to 25%, applied to chargeable income after reliefs such as pension and Rent Relief. Personal income tax is administered by the State Internal Revenue Services. The NTA 2025 guide covers the current bands.

Pay As You EarnPAYE

The method of collecting personal income tax from employees. The employer works out the tax on the ordinary PIT bands, deducts it from salary each month, and remits it to the relevant State IRS on the employee's behalf. It is the same tax as PIT, simply collected at source. See PAYE explained for employers.

Value Added TaxVAT

A consumption tax charged at a standard rate of 7.5% on most goods and services. A registered business charges output VAT on its sales, reclaims input VAT on its purchases, and remits the difference to the NRS each month. Registration is required once taxable turnover reaches 50 million naira. See how to file VAT.

Withholding TaxWHT

An advance deduction of tax at source on certain payments, such as dividends, rent, royalties, contract sums, and professional fees. The party making the payment withholds a set percentage and remits it to the tax authority. It is not a separate tax; the amount withheld is credited against the recipient's final tax bill.

Capital Gains TaxCGT

Tax on the gain you make when you dispose of a chargeable asset, such as property, shares, or digital assets, for more than it cost you. The tax is on the gain, not the whole sale price. For digital assets, see the crypto tax guide.

Companies Income TaxCIT

The tax on company profits. Under NTA 2025, small companies with annual turnover under 100 million naira are exempt from CIT, while larger companies pay the standard rate on their assessable profits.

Tax Clearance CertificateTCC

Official proof that your tax affairs are in order, issued by the tax authority. A TCC is frequently required for government contracts, tenders, licences, and certain regulated transactions. See the TCC guide.

NRS / Rev360

The Nigeria Revenue Service (NRS) is the federal tax authority created by NTA 2025, taking over from the body formerly known as FIRS. Rev360 is its digital platform, where taxpayers register, file returns, and pay. See the Rev360 guide.

Development Levy

A 4% levy on company assessable profits introduced by NTA 2025. It consolidates a patchwork of older levies, including the tertiary education tax and the NITDA, NASENI, and police trust fund levies, into one charge. Small companies are exempt.

E-invoicing / MBS

The requirement for VAT-registered businesses to issue invoices through the NRS Merchant Buyer Solution (MBS). Each invoice is logged with the NRS in real time and carries a unique reference number. Manual paper invoices are no longer valid for claiming input VAT. Check your readiness with the e-invoicing check.

Significant Economic PresenceSEP

The rule that brings non-resident digital and service businesses into the Nigerian tax net when they have meaningful economic activity in Nigeria, such as earning revenue from Nigerian customers, even without a physical office in the country.

Stamp Duty

A tax on certain instruments and transactions, such as agreements, receipts, and electronic transfers. Depending on the document, it is charged either at a flat rate or as a percentage of the value.

Presumptive Tax

A simplified basis for taxing small or informal businesses that do not keep full accounting records. Instead of taxing audited profit, the authority assesses tax on a presumed income or turnover measure, making compliance simpler for the smallest taxpayers.