1. App Logic Overview (NTA 2026)

Core Purpose TaxMateNG is an offline-first compliance engine built to help individuals, SMEs, and tax professionals maintain pristine financial cleanliness and calculate their annual liabilities under the Nigeria Tax Act (NTA) 2026 regime. The goal is to eliminate calculation errors and generate audit-ready reports for official submissions.

Key NTA 2026 Changes Implemented in Our Engine

• Abolition of Minimum Tax: The 0.25% minimum tax for non-SME companies is removed.

• Consolidated Development Levy: All previous levies (ITF, NASENI, etc.) are replaced by a single 4% levy on Assessable Profit for CIT.

• Merged CGT for PIT: Capital Gains are no longer taxed at a flat 10%. They are now merged into your personal income and taxed at progressive marginal rates, subject to statutory safe harbors.

• Capital Allowance Restriction: For CIT, utilized Capital Allowance is now capped at 66.67% (2/3) of the assessable profit for the year (exceptions apply for specific sectors like Manufacturing/Agriculture).

• New PIT Reliefs & Thresholds: Introduction of the ₦800,000 "Zero-Tax" threshold, alongside new reliefs for Annual Rent Paid (capped at ₦500k) and Owner-Occupied Loan Interest, replacing the old CRA.

2. PIT Guide: Personal & Capital Gains Tax

Calculation Flow The PIT calculator determines your final tax liability by structuring your data through a precise flow:

1. Gross Income: Total income from all sources (employment, business, investments).

2. Mandatory Deductions: Statutory contributions such as Pension, NHF, and NHIS.

3. Qualifying Reliefs: Deductions including Life Insurance, Annual Rent Paid, and applicable mortgage interest.

4. Taxable Income: The remaining income after deductions and reliefs, including any net capital gains.

5. Tax Calculation: Applies the progressive NTA 2026 tax bands (0%–25%/30%) to your taxable income.

Important Note on Capital Gains (CGT)

• The Safe Harbor Exemption: TaxMateNG automatically applies the statutory gatekeeper limits. Gains on share disposals are entirely exempt if your total proceeds are under ₦150 Million AND your net gains are under ₦10 Million.

• Apportionment: If thresholds are breached, the app merges the gain with your income and automatically apportions the final tax between regular income and capital gains, detailed in your exported PDF report.

3. CIT Guide: Corporate Income Tax

Book Profit vs. Assessable Profit The app automates the complex transition from raw Book Profit to compliant Assessable Profit. It automatically adds back disallowed expenses (e.g., fines, non-approved depreciation) and subtracts your statutory Capital Allowance.

Key CIT Concepts

• Capital Allowance (CA): Calculated directly from your logged Asset Ledger. The app automatically applies the 66.67% restriction rule based on your sector.

• Small Company (SME) Exemption: Companies are exempt from CIT and the 4% Development Levy if they meet the new dual thresholds:

  • Turnover ≤ ₦100M (or applicable Finance Act limit)

  • Net Assets ≤ ₦250M

• Withholding Tax (WHT):

  • WHT Credit Tracked: Deducted by clients from your income; automatically applied to reduce your final CIT liability to prevent double taxation.

  • WHT to Remit: Tax you deduct from vendor payments, compiled for FIRS remittance.

Exporting Your Final Liability Your final corporate liability is the sum of your CIT, Development Levy, and applicable Capital Gains Tax, minus your tracked WHT Credits. You can instantly export this breakdown as a Master Corporate Tax PDF Report or as Rev360-ready CSVs via the TaxMateNG Desktop app.

4. Official & Authoritative Sources

All internal engine calculations are rigorously validated against publicly available official government gazettes and top-tier financial firm analyses.

• Nigeria Tax Act, 2025 (Official PDF): https://www.nipc.gov.ng/wp-content/uploads/2025/07/Nigeria-Tax-Act-2025.pdf

• PwC Nigeria – Top 20 Changes & Top 6 Actions: https://www.pwc.com/ng/en/assets/pdf/the-nigeria-tax-reform-acts-top-20-changes-to-know-and-top-6-things-to-do-pwc.pdf

• PwC Nigeria – Sectoral Analysis: https://www.pwc.com/ng/en/publications/nigeria-tax-reform-2025.html

• KPMG Nigeria – The Nigeria Tax Act (NTA), 2025: https://assets.kpmg.com/content/dam/kpmg/ng/pdf/2025/06/The%20Nigeria%20Tax%20Act%20(NTA),%202025.pdf

• Official Gazette - Nigeria Tax Reform Acts: https://fiscalreforms.ng/index.php/2025/09/06/the-official-gazette-2025-nigeria-tax-reform-acts/

• Federal Inland Revenue Service (FIRS): https://www.firs.gov.ng

• TaxMateNG Developer Documentation: https://www.enochigreen.com/taxmateng

Disclaimer: TaxMateNG is an offline computational engine designed to structure your financial ledgers and generate audit-ready compliance estimates based on the sources above. It is not a direct filing portal. You must use the exported PDFs and CSVs to submit your final returns via official government portals (e.g., TaxPro Max, Rev360, or State IRS) or consult a certified tax professional.