How to File Business Tax Return in Nigeria

Companies with annual turnover below ₦25 million are eligible for 0% Company Income Tax under the 2026 Tax Act. This is a significant benefit for small businesses.

Requirements:

• Annual turnover must be less than ₦25,000,000
• Must be a Nigerian company
• Must file returns on time

Companies with annual turnover of ₦25 million and above are subject to:

• 30% of assessable profit for large companies
• 20% for medium-sized companies (specific conditions apply)

• Salaries and wages (including PAYE)
• Rent for business premises
• Utilities (electricity, water, internet, phone)
• Office supplies and stationery
• Professional fees (legal, accounting, consulting)
• Insurance premiums
• Repairs and maintenance

• Motor vehicles: 25% per annum
• Plant and machinery: 20% per annum
• Furniture and fittings: 10% per annum
• Buildings: 10% per annum
• Computers and software: 20% per annum

Note: Capital allowances are calculated on the cost of assets, not depreciation from financial statements.

Interest paid on loans used for business purposes is fully deductible. Keep loan agreements and interest payment receipts.

Contributions to approved pension schemes for employees are deductible. Standard rate is 10% of employee salary (employer portion).

Costs of training employees to improve business operations are deductible.

Expenses incurred on R&D activities are deductible.

Donations to approved charitable organizations are deductible (subject to limits).

1. Visit the Federal Inland Revenue Service (FIRS) website: www.firs.gov.ng
2. Click on "Taxpayer Portal" or "e-Services"
3. If you don't have an account, click "Register" and provide:
   • Your Company TIN (Tax Identification Number)
   • Company registration number (CAC)
   • Company email address
   • Authorized representative details
   • Create a password
4. Verify your email address through the confirmation link

1. Log in to your FIRS taxpayer portal
2. Navigate to "File Returns" or "Tax Returns"
3. Select "Company Income Tax Return" or "CIT Return"
4. Choose the tax year you're filing for (e.g., 2026)
5. Select your accounting year-end date

1. Company name (as registered with CAC)
2. Company TIN
3. CAC registration number
4. Business address
5. Nature of business
6. Accounting year-end date
7. Authorized signatory details

1. Turnover/Sales: Enter total revenue from business operations
   • Include all sales, service income, and other revenue
   • Exclude VAT (if registered for VAT)
2. Other Income: Include:
   • Interest income
   • Rental income (if applicable)
   • Dividend income
   • Any other taxable income
3. Total Income: Sum of all income sources

Important: If your turnover is below ₦25 million, you qualify for 0% tax rate.

1. Cost of Sales: Direct costs related to goods sold
2. Operating Expenses:
   • Salaries and wages
   • Rent
   • Utilities
   • Professional fees
   • Insurance
   • Repairs and maintenance
   • Other operating expenses
3. Depreciation: From your financial statements
4. Capital Allowances: Calculated separately (different from depreciation)
5. Interest on Loans: Business loan interest
6. Pension Contributions: Employer contributions
7. Other Deductions: Training, R&D, charitable donations, etc.

1. The system will calculate:
   • Gross Profit = Turnover - Cost of Sales
   • Net Profit = Gross Profit - Operating Expenses - Depreciation
   • Adjusted Profit = Net Profit + Disallowed Expenses - Capital Allowances
   • Taxable Profit = Adjusted Profit
2. Review the calculations carefully
3. Ensure capital allowances are properly calculated (different from depreciation)

1. Determine your tax rate:
   • 0% if turnover < ₦25 million (small company)
   • 20% or 30% if turnover ≥ ₦25 million
2. Calculate tax: Taxable Profit × Tax Rate
3. Deduct:
   • Tax already paid (advance payments)
   • Withholding Tax (WHT) credits
   • Previous year's tax overpayment (if any)
4. Determine final tax due or refund

1. Upload scanned copies of:
   • Audited financial statements (or management accounts)
   • Tax computation schedule
   • Capital allowance computation
   • Bank statements
   • CAC registration certificate
   • WHT certificates
   • Tax payment receipts
   • Any other relevant documents
2. Ensure documents are clear and in PDF format

1. Review all information thoroughly
2. Verify calculations
3. Check the declaration box confirming accuracy
4. Authorized signatory must sign (digital signature or upload signed form)
5. Click "Submit" or "File Return"
6. Save the acknowledgment receipt
7. Print confirmation for your records

1. Visit your nearest FIRS office
2. Request Form CIT001 (Company Income Tax Return Form)
3. Alternatively, download from FIRS website

1. Prepare detailed tax computation showing:
   • Profit per financial statements
   • Add-backs (disallowed expenses)
   • Deductions (capital allowances, etc.)
   • Adjusted profit
   • Tax calculation
2. Ensure calculations are accurate
3. Have it reviewed by an accountant if possible

1. Complete all sections with black ink
2. Provide company information
3. Enter income and expense details
4. Include tax computation
5. Have authorized signatory sign the form

1. Audited financial statements
2. Tax computation schedule
3. Capital allowance computation
4. All supporting documents (as listed above)
5. Organize documents in order

1. Visit FIRS office in your state
2. Submit completed form with all attachments
3. Obtain acknowledgment receipt
4. Keep copies of everything

If your company qualifies for the 0% tax rate:

• You still must file returns
• Maintain proper records
• Comply with all filing requirements
• If turnover exceeds ₦25M in future, you'll be subject to standard rates

New businesses should:

• Register with CAC first
• Obtain TIN from FIRS
• Keep records from day one
• File returns even if making losses (for carry-forward of losses)