Company Income Tax (CIT)

Company Income Tax (CIT)
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Company Income Tax (CIT)

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

CIT Law

SIAO COMPANY INCOME TAX CALCULATOR

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