Minimum tax under CITA is computed as:
A0.5% of gross turnover less franked investment incomeCORRECT
B1% of total profit
C2% of gross turnover
D30% of assessable profit
ICANTaxationCompanies Income Tax: Computation and Losses2022
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Why the answer is A, and why the others tempt you.
Where a company has no taxable profits or the tax payable is below the minimum, minimum tax of 0.5% of gross turnover less franked investment income applies. Small companies with turnover below ₦25 million are exempt.
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