Is Your Small Business Truly Exempt from Corporate Tax?

Segun runs a three-person brand strategy agency in Surulere. Last year his turnover was ₦12 million. He saw headlines saying SMEs under ₦100 million are exempt from CIT and VAT, so he missed the March 31 filing deadline. On April 15, his bank account was flagged. The tax authority demanded 30% on his net profit plus a late-filing penalty. There’s a fine-print trap in the Nigeria Tax Act. The ₦100 million threshold only covers Vocational or Artisan Services. Professional Services fall outside that exemption, no matter how small. In my work building a logic engine for the new laws, I mapped Section 202 definitions. Professional Services rely on specialized theoretical knowledge—consulting, legal advice, accounting, architecture. Vocational Services are hand-based trades like tailoring, carpentry, mechanics. Quiz: Which four of these must pay 30% CIT regardless of size? 1. Law Firm 2. Tailoring 3. Tax Consultancy 4. Architecture 5. Carpentry 6. Management Consulting 7. Auto Garage 8. Beauty Salon. Drop your answers below!

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