Templates kept up to date with current regulations Secure payment Email support
My order
Calculator Free, no sign-up Data as of 1 January 2024

Nigeria Capital Gains Tax Calculator

Calculates the capital gains tax (CGT) due on the sale of assets like property, shares, or business assets in Nigeria, based on the Capital Gains Tax Act and relevant Finance Acts.

Your details

The total amount received or to be received for the asset, in NGN.

The original purchase price or cost of acquiring the asset.

Costs of capital improvements that added value to the asset (e.g., renovations).

The type of asset being sold. Certain assets may have specific exemptions.

For real property only: Was this property your main residence for the entire period of ownership? If you lived there for only part of the time, the exemption may be partial. This calculator assumes a full exemption only if 'Yes' is selected. Consult a tax professional for partial periods.

Number of complete years you have owned the asset. Required to check eligibility for the small share sale exemption. For other asset types, it is not used in the calculation but may be relevant for other tax considerations.

The applicable Capital Gains Tax rate. For individuals and companies, the default is the standard 10% flat rate under the Capital Gains Tax Act. If you are using a different rate (e.g., from a specific provision or a proposed change), enter it here.

Result

Capital Gains Tax Due NGN 1,500,000.00

The final amount of capital gains tax payable to the Federal Inland Revenue Service (FIRS).

How it is calculated

Chargeable Gain The profit subject to tax (Sale Price - Acquisition Cost - Improvement Costs).
NGN 15,000,000.00
Exemption Applied Shows if the gain is exempt based on principal private residence or small share sale rules.
None
Taxable Gain The gain after applying any exemptions.
NGN 15,000,000.00
Applicable CGT Rate The Capital Gains Tax rate applied to the taxable gain. Default is 10%.
10 %
Keep in mind
  • This calculator is based on the current Capital Gains Tax Act, which generally applies a flat 10% tax rate on chargeable gains. Significant tax reforms are under discussion in Nigeria; always verify the latest rates with the FIRS or a tax professional.
  • The 'Principal Private Residence' exemption applies if the property was your main residence throughout the entire period of ownership. If you lived there for only part of the ownership period, a partial exemption may apply, which this calculator does not compute. Consult a tax professional for partial periods.
  • The 'Small Share Sale Exemption' applies if the total gain on the sale of shares is NGN 100,000 or less AND you have held the shares for at least 5 complete years. The 'Holding Period' input is only required to check this exemption.
  • The 'Capital Gains Tax Rate' input allows you to override the default 10% rate. Use this if you are applying a specific rate from a new law, treaty, or provision.
  • Consult a tax professional or the Federal Inland Revenue Service (FIRS) for definitive advice, especially for complex transactions or to confirm the latest legislation.

Indicative result, calculated from the details and the rules listed below. It does not replace an official calculation or advice from a professional.

Prepare the document now

With the result already worked out, you can fill in the document right away.

The editor opens with the calculator details already entered.

Contract of Sale of Real Property
You may also need

Nigeria Capital Gains Tax

Capital Gains Tax (CGT) in Nigeria is a tax levied on the profit (or gain) made from selling or disposing of a chargeable asset that has increased in value since you acquired it. The primary law governing CGT is the Capital Gains Tax Act, Cap C1 LFN 2004, which has been amended by various Finance Acts. Currently, capital gains are generally taxed at a flat rate and are not integrated into personal or corporate income tax.

How is Capital Gains Tax Calculated?

The calculation follows a straightforward process:

  1. Determine the Chargeable Gain: This is the taxable profit. It is calculated as the Sale Price minus the original Acquisition Cost and any eligible Improvement Costs (capital expenditures that enhance the asset's value).
  2. Apply Exemptions: Nigerian law provides specific exemptions that can reduce or eliminate the tax:
    • Principal Private Residence: Gains from the sale of your main residence are exempt from CGT. The exemption typically applies if the property was your main residence throughout the entire period of ownership. Partial ownership periods may lead to a partial exemption.
    • Small Share Sales: Gains of NGN 100,000 or less from the sale of shares are exempt if you have held those shares for at least 5 complete years.
  3. Apply the Tax Rate: The remaining taxable gain is multiplied by the applicable Capital Gains Tax rate. The standard rate under the Act is 10% for both individuals and companies. This is the default rate used in this calculator.

Example Calculation

Let's say Mr. Adebayo sells a rental property (not his main home) for NGN 50,000,000. He bought it for NGN 30,000,000 and spent NGN 5,000,000 on major renovations.

  • Chargeable Gain: 50,000,000 - 30,000,000 - 5,000,000 = NGN 15,000,000
  • No exemptions apply (it's not his principal private residence).
  • Taxable Gain: NGN 15,000,000
  • Tax Rate: 10%
  • Capital Gains Tax Due: 15,000,000 * 10% = NGN 1,500,000

Common Scenarios

  • Selling Your Home: If it was your main residence for the entire time you owned it, the entire gain is tax-free. If you lived there for only part of the time, a proportional exemption may apply.
  • Selling Shares: Small, long-term gains (≤ NGN 100,000 held for 5+ years) are exempt. Larger gains are taxed at the standard CGT rate (default 10%).
  • Selling a Business Asset: Both individuals and companies pay CGT on the gain at the standard rate, unless a specific provision applies.

Important Considerations and Next Steps

Tax reforms in Nigeria are ongoing. While this calculator uses the established 10% flat rate, always verify the current rate with the Federal Inland Revenue Service (FIRS), especially for transactions in 2026 and beyond. The input for 'Capital Gains Tax Rate' allows you to adjust if you are using a confirmed different rate.

After estimating your tax liability, you must formalize the transaction with the appropriate legal document. For the sale of real property, use a Contract of Sale of Real Property. For the sale of company shares, a Share Sale and Purchase Agreement is required. For the sale of business assets, an Asset Sale and Purchase Agreement is essential. These documents record the sale price and acquisition costs, which form the basis of your tax calculation.

Frequently asked questions

What is the capital gains tax rate in Nigeria?

The standard rate under the Capital Gains Tax Act is a flat 10% on the chargeable gain, for both individuals and companies. This is the default rate used in this calculator. Always check with the FIRS for the most current rate, as tax laws can change.

Is there any exemption for selling my house in Nigeria?

Yes, the 'Principal Private Residence' exemption. If the property sold was your main residence for the entire period you owned it, the entire capital gain is exempt from tax. If you lived there for only part of the ownership period, the exemption may be partial. Consult a tax advisor for partial periods.

Do I pay capital gains tax on stock market shares in Nigeria?

Yes, but a small gain exemption exists. If your total gain from selling shares is NGN 100,000 or less AND you have owned the shares for at least 5 complete years, the gain is exempt. Gains above this threshold are taxable at the standard CGT rate.

Is capital gains tax added to my income tax in Nigeria?

Under the current Capital Gains Tax Act, capital gains are generally taxed separately at a flat rate (default 10%). They are not automatically added to your total income to be taxed at your progressive Personal Income Tax rates. However, tax reforms are proposed, so this could change. Use the 'Capital Gains Tax Rate' input to adjust if you are applying a different, confirmed rate.

Can I deduct improvement costs from the capital gain?

Yes, the cost of capital improvements that added lasting value to the asset (like a building extension, major renovation, or adding fixtures) can be subtracted from the sale price along with the original acquisition cost to calculate the chargeable gain.

When do I pay the capital gains tax?

Capital Gains Tax is payable to the Federal Inland Revenue Service (FIRS). It is typically due in the year of assessment following the year the asset was disposed of. You must file the necessary returns and pay the tax as stipulated by FIRS guidelines.

Calculators →