Tax Compliance Dashboard¶
Last reviewed: 2026-03-31 · Nnamdi
Status: Complete
Route: /tax/compliance
1. What is it?¶
The Tax Compliance Dashboard is the first stop in Finora's Tax Management section. It tells a business, in real time, whether it qualifies as a small company or small business under the 2026 Nigerian Tax Reform Act (NTA 2025 / NTAA 2025), what tax exemptions it holds, and how much it is saving by virtue of those exemptions. The dashboard monitors two eligibility metrics — Annual Turnover and Fixed Assets — and automatically recalculates qualification status as invoices and assets are posted. It also contains the full statutory legal basis for every classification, including direct citations to the Nigeria Tax Act 2025 (No. 7 of 2025) and the Nigeria Tax Administration Act 2025 (No. 5 of 2025).
2. How does it work in Finora?¶
2.1 The Tax Compliance Dashboard page (/tax/compliance)¶
Header: - Heading: "Tax Compliance Dashboard" - Subtitle: "Monitor your tax qualification status for fiscal year 2026" - Refresh Data button — re-reads the latest GL data to update all metrics
2.2 Small Company Status banner¶
A prominent banner shows the business's current qualification status:
QUALIFIED ✓ — Sample (COA Test School Academy):
"Small Company Status: QUALIFIED ✓" "Your business qualifies for small company tax exemptions under the 2026 Nigerian Tax Reform Act. You are exempt from CIT, CGT, and Development Levy!"
Estimated Tax Savings This Year: - Total: ₦43,860.00 - Breakdown: CIT: ₦38,700.00 + Development Levy: ₦5,160.00
The savings estimate is calculated by applying standard rates to the business's assessable profit. For the test business, this is the amount the business would have owed if it did not qualify as a small company.
2.3 Qualification metrics¶
Two threshold metrics determine eligibility. Both must be within threshold to qualify:
Annual Turnover: | Field | Value (test business) | |-------|----------------------| | Current Year | ₦430,000.00 | | Threshold (VAT) | ₦100,000,000 | | Progress | 0.4% | | Status | Within Threshold ✓ |
Fixed Assets: | Field | Value (test business) | |-------|----------------------| | Total Value | ₦0.00 | | Threshold | ₦250,000,000 | | Progress | 0.0% | | Status | Within Threshold ✓ |
Metrics update in real time as invoices are posted and fixed assets are recorded.
Critical nuance: The dashboard uses ₦100M as the turnover threshold (the VAT small business threshold from NTAA 2025 §147). The CIT/CGT/Development Levy small company threshold is the lower figure of ₦50M (NTA 2025 §56). A business with turnover between ₦50M and ₦100M retains the VAT exemption but is NOT a small company for CIT/CGT/Development Levy purposes. Finora's dashboard displays ₦100M as the threshold — agents should be aware of this distinction when advising businesses near the ₦50M–₦100M range.
2.4 Tax Exemption Status¶
| Tax | Status for qualifying small company |
|---|---|
| Corporate Income Tax (CIT) | EXEMPT (0%) |
| Capital Gains Tax (CGT) | EXEMPT (0%) |
| Development Levy | EXEMPT (0%) |
| VAT Collection | NOT REQUIRED |
2.5 Fiscal Year Period¶
- Current Fiscal Year: 2026
- Period: 2026-01-01 to 2026-12-30
- Qualification is calculated on revenue and assets within this fiscal year period
2.6 Legal Basis & Statutory Citations (expandable section)¶
Clicking the "Legal Basis & Statutory Citations" panel expands a formal legal memorandum. Key sections:
I. Small Company — CIT, CGT & Development Levy Exemption¶
Citation: Nigeria Tax Act 2025 (No. 7 of 2025), Section 56 Gazette: Federal Republic of Nigeria Official Gazette, 2025 No. 7, A 385
"A small company means a company resident in Nigeria whose annual gross turnover does not exceed fifty million naira (₦50,000,000) and whose total fixed assets do not exceed two hundred and fifty million naira (₦250,000,000), provided that any business providing professional services shall not be classified as a small company." — NTA 2025, §56
Exemptions conferred by §56: - CIT: 0% (standard rate: 25%) - CGT: 0% (standard rate: 25%) - Development Levy: 0% (standard rate: 4% of assessable profits)
II. Small Business — VAT Registration Exemption¶
Citation: Nigeria Tax Administration Act 2025 (No. 5 of 2025), Section 147 Gazette: Federal Republic of Nigeria Official Gazette, 2025 No. 5, A 257
"A small business means a business with an annual gross turnover not exceeding one hundred million naira (₦100,000,000) and total fixed assets not exceeding two hundred and fifty million naira (₦250,000,000), provided that any business providing professional services shall not be classified as a small business." — NTAA 2025, §147
Exemption conferred: - Exempt from mandatory VAT registration and monthly filing obligations - VAT rate when applicable: 7.5% (unchanged)
III. Professional Services Organisation (PSO) — Excluded from Small Company/Business Benefits¶
Citation: NTA 2025, Chapter 6, Section 144
A PSO provides services requiring specialised knowledge, skills, and qualifications. The PSO exclusion means professional firms cannot claim small company/small business exemptions regardless of their turnover.
PSO categories (§144): - Accountants and accounting firms - Legal practitioners (lawyers, solicitors, barristers) - Estate surveyors and valuers (ESVARBON-registered) - Architects (ARCON-registered) - Real estate agents and property managers - Management, technical, and advisory consultants - Planning and support services requiring specialist qualifications
Excluded from PSO: - Artisans - Vocational service providers
PSO tax consequences: - CIT: 25% - CGT: 25% - Development Levy: 4% of assessable profits - VAT: mandatory registration regardless of turnover (§§144–158) - Excess input VAT refundable by NRS within 30 days (§155) - WHT on PSO fees received: 10% (5% where client is a designated startup)
IV. Technology-Driven Services — NOT a PSO¶
Technology-driven services (software/app development, fintech, SaaS, cloud platforms, virtual learning, digital shared services) are classified distinctly from PSOs under NTA 2025.
Practical classification test: - ✓ Primary output = technology deliverable (website, app, software, digital service) → technology-driven; NOT a PSO → eligible for small company/business exemptions if thresholds met - ⚠ Primary output = professional opinion, advice, or report → PSO - ⚠ Mixed model (technology product + consulting/advisory services) → obtain formal tax opinion from a CITN-certified Nigerian tax adviser
V. Development Levy — Replaces Four Former Levies¶
The consolidated Development Levy (4% of assessable profits) replaces: - Tertiary Education Tax (TET) — formerly 3% of assessable profit - Information Technology Levy — formerly 1% of profit before tax - NASENI Levy — formerly 0.25% of profit before tax - Nigeria Police Trust Fund Levy — formerly 0.005% of net profit
Small companies are fully exempt from the consolidated Development Levy.
VI. Standard Tax Rates for Non-Small Companies (NTA 2025)¶
| Tax | Rate |
|---|---|
| CIT | 27.5% (YoA 2025) → 25% (YoA 2026 onwards) |
| CGT | 25% |
| Development Levy | 4% of assessable profits |
| VAT | 7.5% |
| WHT on professional services fees | 10% (5% for designated startup clients) |
Previous CITA rate: 30%. The NTA 2025 reduces this to 25% on a transitional basis. Small company CIT threshold under NTA 2025 §56: ₦50M (increased from ₦25M under old CITA as amended by Finance Acts 2019–2024).
3. Business rules & constraints¶
| Rule | Detail |
|---|---|
| Real-time metrics | Turnover and Fixed Assets update as invoices are posted and assets are recorded — no need to manually recalculate |
| Qualification is automatic | Finora determines small company / small business status from live data — no user action required |
| Two separate thresholds | ₦50M for CIT/CGT/Development Levy (NTA §56); ₦100M for VAT (NTAA §147) — both with ₦250M fixed assets cap |
| PSOs are always excluded | Professional service businesses never qualify for small company exemptions regardless of revenue |
| Refresh Data | Use this button if recent transactions are not reflected in the metrics |
| Fiscal year is calendar year | 2026 = 1 January to 30 December 2026 |
| Savings estimate is indicative | Calculated on assessable profit, not revenue — the actual saving depends on the CIT computation |
4. Nigerian regulatory context¶
The 2026 Nigerian Tax Reform Act¶
The Nigeria Tax Act 2025 (NTA 2025) and Nigeria Tax Administration Act 2025 (NTAA 2025) took effect on 1 January 2026, replacing the Companies Income Tax Act (CITA) 1990 (as amended) and the Federal Inland Revenue Service (FIRS) administration framework. Key changes relevant to small businesses:
- CIT rate reduced: From 30% (CITA) to 27.5% (YoA 2025) to 25% (YoA 2026+)
- Small company threshold raised: From ₦25M to ₦50M annual turnover (eligible for 0% CIT/CGT/Development Levy)
- VAT small business threshold: New ₦100M threshold for VAT registration exemption (previously no formal small business VAT exemption)
- Development Levy: Four separate levies (TET, IT Levy, NASENI, Police Trust Fund) merged into a single 4% levy
- PSO regime: Formal professional services VAT framework introduced
- Technology-driven services: Formally distinguished from PSOs
Practical implications for Finora's customers¶
- Most small businesses (< ₦50M turnover): Pay 0% CIT, 0% CGT, 0% Development Levy, no VAT registration required — significant compliance simplification
- Medium businesses (₦50M–₦100M): Pay standard CIT/CGT/Development Levy rates but exempt from VAT registration
- Large businesses (> ₦100M) or PSOs of any size: Full tax obligations — CIT 25%, VAT 7.5%, Development Levy 4%
- Technology companies: Not PSOs; can claim small company/business exemptions based on revenue and asset thresholds
5. Common customer questions¶
Q: "What does 'Small Company Status: QUALIFIED' mean?"
Your business qualifies as a small company under the 2026 Nigerian Tax Reform Act. This means you are exempt from paying Corporate Income Tax (CIT), Capital Gains Tax (CGT), and the Development Levy for fiscal year 2026. You also don't need to register for or file monthly VAT returns.
Q: "My business is a law firm / accounting firm / consulting firm. Will I qualify?"
Professional service businesses (PSOs) — including accountants, lawyers, management consultants, architects, estate agents — are excluded from the small company and small business exemptions regardless of their revenue. Your business will be subject to full CIT (25%), CGT (25%), Development Levy (4%), and mandatory VAT registration regardless of turnover. Escalate to Tier 2 for guidance on PSO tax filing.
Q: "My business is an IT / software / fintech company. Do I qualify as a small company?"
Technology-driven services businesses are not classified as PSOs under the NTA 2025. If your annual turnover is below ₦50M and fixed assets below ₦250M, your business qualifies for the small company exemptions (0% CIT, 0% CGT, 0% Development Levy). If turnover is ₦50M–₦100M, you lose the CIT exemption but retain the VAT registration exemption.
Q: "I have a mixed business — part consulting, part software product. What applies?"
Mixed model businesses (professional services + technology) should obtain a formal tax opinion from a CITN-certified Nigerian tax adviser. Finora's dashboard classifies based on the primary business type — do not rely solely on the dashboard if your business has a significant professional services component. Escalate to Tier 2.
Q: "The dashboard shows ₦100M as the threshold. I've heard the limit is ₦50M. Which is right?"
Both thresholds exist under different laws. ₦50M is the small company threshold under NTA 2025 §56 (relevant to CIT/CGT/Development Levy exemptions). ₦100M is the small business threshold under NTAA 2025 §147 (relevant to VAT registration exemption). The dashboard prominently shows ₦100M — this is the VAT threshold. If your turnover is between ₦50M and ₦100M, you do NOT qualify for CIT/CGT/Development Levy exemptions even though the dashboard still shows you within the ₦100M threshold.
Q: "What happens if I exceed the threshold during the year?"
Once cumulative annual turnover exceeds ₦50M (for CIT exemption) or ₦100M (for VAT exemption), the business no longer qualifies as a small company / small business for that fiscal year. You would need to register for VAT and prepare for CIT filing. Finora will update the compliance status in real time. Escalate to Tier 2 for guidance on mid-year qualification loss.
6. Known edge cases¶
Dashboard shows ₦100M threshold (not ₦50M)¶
As documented in section 2.3, the dashboard's Annual Turnover progress bar uses the ₦100M VAT threshold. The CIT/CGT/Development Levy small company threshold is ₦50M. Agents advising businesses with ₦50M–₦100M turnover must be aware their CIT/CGT/Development Levy exemption has lapsed even if the dashboard shows "Within Threshold."
PSO customers showing as Qualified¶
If a PSO (professional services firm) has been classified as a small business by the system, escalate to Tier 3. The PSO exclusion should prevent qualification but may not be automatically detected if the business type was entered incorrectly at setup.
Savings estimate only reflects CIT + Development Levy¶
The estimated savings shown on the banner accounts for CIT and Development Levy only. VAT administration savings (avoiding monthly filings, input/output tracking) are not quantified.
Professional services test is not automated¶
Finora determines PSO status from the business type entered in Business Settings. If a consulting firm registered as a "Technology Company" to game the system, the dashboard may incorrectly show them as Qualified. Escalate to Tier 3 for reclassification.
7. Escalation trigger¶
Escalate to Tier 3 (Founder) if: - A business's compliance status appears incorrect (PSO showing as Qualified; or a clearly non-PSO showing as Not Qualified) - A business exceeded the ₦50M or ₦100M threshold mid-year and the dashboard hasn't updated after Refresh Data - The statutory citations section shows an error or incorrect legal reference
Escalate to Tier 2 (Support Lead) if: - Business is a PSO and needs guidance on their specific tax obligations under the PSO regime - Business has a mixed model (technology + consulting) and needs classification guidance - Business lost qualification mid-year and needs to understand their obligations - Business is asking detailed questions about CIT computation methodology — direct to CIT Computations page and escalate if needed
8. Last reviewed¶
2026-03-31 — Nnamdi. Verified against production. Tax Compliance Dashboard for COA Test School Academy: Status = QUALIFIED. Annual Turnover ₦430,000 / Threshold ₦100M / 0.4%. Fixed Assets ₦0 / Threshold ₦250M / 0.0%. Tax Exemptions: CIT EXEMPT / CGT EXEMPT / Development Levy EXEMPT / VAT NOT REQUIRED. Estimated savings ₦43,860 (CIT ₦38,700 + Development Levy ₦5,160). Fiscal year 2026-01-01 to 2026-12-30. Legal Basis panel expanded — full NTA 2025 §56 (small company, ₦50M CIT threshold) and NTAA 2025 §147 (small business, ₦100M VAT threshold) citations captured. PSO exclusion documented. Technology-driven services classification documented. Development Levy consolidation (replaces TET + IT Levy + NASENI + Police Trust Fund) documented. Standard rates table: CIT 25%, CGT 25%, Development Levy 4%, VAT 7.5%. Threshold discrepancy (dashboard shows ₦100M / CIT threshold is ₦50M) documented as known edge case.