Company Income Tax Return (Nigeria)

A Company Income Tax Return in Nigeria sets out the financial particulars the authority requires to assess the tax owed.

The legal basis for company income tax in Nigeria is the Companies Income Tax Act Cap C21 LFN 2004 (CITA), as amended by successive Finance Acts — particularly the Finance Act 2019, the Finance Act 2020, the Finance Act 2021, the Finance Act 2022, and the Finance Act 2023. The standard CIT rate for large companies (turnover above NGN 100 million) is 30% of assessable profits under Section 40 of CITA. Small companies (turnover not exceeding NGN 25 million) are exempt from CIT under the Finance Act 2019, and medium companies (turnover between NGN 25 million and NGN 100 million) are subject to a reduced CIT rate of 20% under the Finance Act 2020.

The Federal Inland Revenue Service (FIRS), established under the Federal Inland Revenue Service (Establishment) Act 2007 (FIRS Act), administers and collects company income tax. Every company liable to tax in Nigeria must register with the FIRS, obtain a Tax Identification Number (TIN), and file annual CIT returns within six months of its financial year-end under Section 55 of CITA. FIRS may extend this deadline upon application.

The self-assessment system introduced under the Finance (Miscellaneous Taxation Provisions) Act 1998 and consolidated in CITA requires companies to: compute their own taxable profit; calculate and pay estimated tax instalments during the tax year; file the annual CIT return with audited accounts; and pay any balance of tax due at the time of filing. Penalties for late filing under Section 56 of CITA include a fine of NGN 25,000 for the first month of default and NGN 5,000 for each subsequent month.

The Finance Act 2023 introduced several amendments including changes to Minimum Tax provisions under Section 33 of CITA, revised pioneer status incentives under the Industrial Development (Income Tax Relief) Act Cap I7 LFN 2004, and updated transfer pricing rules under the Income Tax (Transfer Pricing) Regulations 2018 issued by the FIRS.

The legal framework governing the Company Income Tax Return (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Company Income Tax Return (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies and Allied Matters Act (CAMA) 2020 sets the foundational requirements.

A Nigeria Company Income Tax Return must be filed by every company resident in Nigeria or having a permanent establishment in Nigeria, for each financial year in which the company has taxable income or is liable to Minimum Tax.

All companies incorporated under CAMA 2020 and registered with the Corporate Affairs Commission (CAC) must file annual CIT returns with the FIRS within 6 months of their financial year-end, even if the company made no profit — a nil return is required where turnover is below the NGN 25 million small company threshold.

Foreign companies with a fixed place of business in Nigeria — branch offices, project offices, or representative offices registered under Part B of CAMA 2020 — must file CIT returns for Nigerian-source income as non-resident companies with a permanent establishment.

Companies in the first year of trading must file within 18 months of their commencement of business under Section 55 of CITA, as their first assessment period may span more than 12 months.

Companies claiming tax reliefs — including capital allowances under the Second Schedule to CITA, investment allowances, export expansion grants, or pioneer status under the Industrial Development (Income Tax Relief) Act Cap I7 LFN 2004 — must file CIT returns to substantiate and claim these reliefs against their tax liability.

Companies subject to Transfer Pricing regulations under the Income Tax (Transfer Pricing) Regulations 2018 must file the relevant Disclosure Forms alongside their CIT return where they have related-party transactions above NGN 300 million.

Parties in Nigeria should prepare a Company Income Tax Return (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A Nigeria Company Income Tax Return must contain the following key elements to comply with CITA and FIRS requirements.

Company Identification: Company name, TIN, CAC RC number, registered address, nature of business, accounting year-end, and industry sector code.

Audited Financial Statements: Profit and loss account and balance sheet prepared in accordance with IFRS or GAAP as adopted by the Financial Reporting Council of Nigeria (FRCN) under the Financial Reporting Council Act 2011. These accounts form the basis of the CIT computation.

Tax Profit Computation: Reconciliation of accounting profit to taxable profit — adding back non-deductible expenditure (e.g., entertainment expenses, capital expenditure charged to income) and deducting allowable expenses and capital allowances. This computation follows the format prescribed by FIRS.

Capital Allowances Schedule: Computation of initial and annual allowances on qualifying capital expenditure under the Second Schedule to CITA, including plant, machinery, buildings, and motor vehicles.

Minimum Tax: Where the company is not in pioneer status, the Minimum Tax under Section 33 of CITA (0.5% of turnover for large companies, as amended by Finance Act 2019) must be computed and paid if it exceeds the calculated CIT liability.

CIT Calculation: Tax at 30% (or 20% for medium companies, 0% for small companies) of assessable profit, less any relevant reliefs and deductions.

Withholding Tax Credits: Withholding tax deducted at source by customers and payers during the year, which the company credits against its CIT liability. WHT credit notes from the FIRS must be attached.

Estimated Tax Paid: Quarterly estimated tax payments made during the year under Section 77A of CITA, which are credited against the final CIT liability.

Balance of Tax Due: The difference between the total CIT liability and the WHT credits plus estimated tax paid, to be remitted to FIRS at the time of filing.

Certificate of Residence: Where the company claims double tax treaty relief under any of Nigeria's bilateral Double Taxation Agreements (DTAs), a certificate of tax residence from the relevant foreign tax authority must accompany the return.

Transfer Pricing Disclosure: Where applicable under the Income Tax (Transfer Pricing) Regulations 2018, the relevant TP Disclosure Form (TP Form I or II) must be filed with the CIT Return.

Additional compliance elements for a Company Income Tax Return (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.