What Is Company Income Tax (CIT)?

What Is CIT (Company Income Tax) and Who Is Required to File It in Nigeria?

If you run a registered business in Nigeria, chances are you’ve heard the term Company Income Tax (CIT) at least once. But what does it mean, who is expected to pay it, and why is it such a big deal?

In this blog post, we’re breaking down CIT in a way that makes sense—even if you’re not a finance person.

What Is Company Income Tax (CIT)?

Company Income Tax is a mandatory tax imposed on the profits of registered companies in Nigeria. It’s regulated by the Federal Inland Revenue Service (FIRS) under the Company Income Tax Act (CITA).

In plain language:

If your company is making money, a portion of that profit legally belongs to the government. That’s CIT.

How Much Is the Company Income Tax?

The tax rate your business pays depends on how much it earns annually. Here’s a simple breakdown:

This means some small companies won’t pay CIT—but they are still legally required to file.

Who Needs to File CIT?

Whether you’re making a profit or not, if your business is registered with the Corporate Affairs Commission (CAC), you must file. This includes:

• Private Limited Liability Companies (LLCs)
• Small businesses
• Companies with zero or no profit
• Startups less than two years old

In fact, not filing at all—even with zero revenue—could result in stiff penalties and raise red flags for tax compliance.

When Are You Supposed to File?

FIRS expects companies to file their CIT:

• Within 6 months after the end of your financial (accounting) year
• Or 18 months from incorporation—whichever comes later

If your financial year ends in December, for example, you must file your CIT by June of the following year.

What Happens If You Don’t File?

Ignoring your CIT obligations can result in:

• A penalty of ₦25,000 for the first month
• Additional ₦5,000 for each subsequent month
• Ineligibility for tax clearance
• Loss of access to contracts, grants, or business loans
• Potential blacklisting of your TIN

And once you’re flagged as non-compliant, fixing it can take time and money.

Why It Matters

Filing CIT isn’t just about avoiding penalties—it builds your company’s credibility. Having a clean tax record means you’re taken more seriously by:

• Financial institutions
• Government agencies
• Investors and partners

Bottom Line

CIT is not something to ignore or guess through. Even if your company made zero profit, you’re required to file. And if you’re doing business and earning income? It’s time to play by the rules.

Thankfully, you don’t have to do it alone.

In the next section, we’ll walk you through exactly how to file CIT in Nigeria, step by step.

Step-by-Step Guide to Filing Company Income Tax in Nigeria

Ready to file your Company Income Tax? Here’s how to do it from start to finish.

Whether you’re filing for the first time or trying to fix an overdue situation, these steps will help you understand the process—and make it a lot less stressful.

Step 1: Prepare Your Financial Statements

The first thing you’ll need is a proper financial breakdown of your business. This includes:

• Profit & Loss account
• Balance Sheet
• Notes to the Accounts
• (For larger companies) Cash Flow Statement

These should be prepared by a Chartered Accountant and must reflect accurate financial activities for the fiscal year.

For small companies, unaudited accounts may be accepted with a declaration of revenue.

Step 2: Compute Your CIT

This is where your accountant calculates:

• Taxable profit = income – deductible expenses
• CIT rate = applied based on your company’s turnover
• Deductions for losses carried forward, if any

For example:
If your company earned ₦50M and spent ₦40M on business expenses, your taxable profit is ₦10M. If you’re a medium-sized business, you’ll pay 20% of ₦10M = ₦2M as CIT.

Step 3: Register and File on FIRS TaxPro-Max Portal

You’ll need to:

1. Create an account on the TaxPro-Max platform
2. Upload your financial statements
3. Complete your CIT form online
4. Generate your Payment Reference Number (PRN)

It’s your PRN that allows you to pay through approved banks or channels.

Step 4: Pay Your Tax

You can make payments through:

• Commercial banks (over the counter)
• Online using FIRS-approved gateways

After payment, always ensure you keep your proof of payment and confirmation receipt safe.

Step 5: Obtain Your Tax Clearance Certificate (TCC)

Once your CIT filing and payment are successful, request a Tax Clearance Certificate (TCC) from FIRS. This document is essential when:

• Applying for tenders or contracts
• Requesting loans or grants
• Applying for visas or corporate bank accounts

Documents You’ll Likely Need

Here’s what to have handy when filing CIT:

• CAC registration documents
• Tax Identification Number (TIN)
• Annual financial statements
• Bank statements
• Evidence of previous filings (if applicable)

Let Marb Corporate Handle It for You

At MARB Corporate, we specialize in helping business owners:

• Prepare and file their Company Income Tax
• Stay compliant and penalty-free
• Get Tax Clearance fast and stress-free

Whether you’re just starting or already behind, we’ve got your back.

Telephone: +234 8083240193
Email: marbconcepts@gmail.com

Conclusion

Tax compliance doesn’t have to be scary or confusing. Filing your Company Income Tax on time is not just the law—it’s a smart business move that opens doors to funding, partnerships, and public credibility.

Let’s help you stay compliant, protected, and profitable.