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.

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).

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

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.

6 months after accounting year end.

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.

Penalties of 10% and interest at the prevailing Market rate

As detailed in the enabling tax law and regulations

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

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