Branch vs Subsidiary Tax in Nigeria
Educational overview only—not legal or tax advice. Verify requirements on official portals and with a qualified adviser.
Foreign businesses often choose between a registered Nigerian company (subsidiary) and a branch of the foreign parent. Each path has different CIT mechanics, loss relief, withholding, repatriation, and governance implications. Incorporation and tax law evolve—use this page to frame questions for lawyers and auditors before you sign leases or hire locally.
Subsidiary (local company)
A Nigerian-resident company files CIT on worldwide or Nigerian-source profits per rules, issues local invoices, and can ring-fence operations cleanly in accounts.
Branch (permanent establishment)
A branch may be treated as a PE with profit attribution and TP scrutiny on dealings with head office—see Transfer pricing.