Company Income Tax (CIT)

Introduction

Company Income Tax (CIT) is a tax imposed on the profit of companies other than those involved in oil & gas upstream sector. It is important to state that income from all sources are taxable except those exempted.

Rate of Tax

The rate is 20% of taxable profit for medium size companies (Turnover > N 25 million < 100 million) and 30% for Large Companies (Turnover > N100 million).

Enabling laws

Company Income Tax Act (CITA), Cap C21, LFN 2004 (amended)

Recent Amendments –

  1. the exemption of companies with less than N25 million annual turnover from payment of CIT;
  2. provision of exemptions for the application of excess dividend tax under Section 19 of the CIT Act
  3. requirement of a tax identification number for opening of bank accounts or continue operation of existing bank account
  4. Commencement and cessation rules modified to eliminate overlaps
  5. Bonus of 2% of tax payable (medium-sized companies) and 1% for large companies for early payment of CIT.

Filing obligations

6 months after accounting year end.

Associated Penalties
Non-filing of returns

The failure to file is N 25,000 for the first month of default then N 5,000 for every subsequent month in which the default continues.

Non-payment of taxes

Penalties of 10% and interest at the prevailing Market rate

Available Reliefs

As detailed in the enabling tax law and regulations

Kindly click the link below to download the Company Income Tax Law

DOWNLOAD CIT LAW

SIAO COMPANY INCOME TAX CALCULATOR

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