Key differences between CAC tax filing and FIRS tax filing.

If you’ve registered your business in Nigeria, you’ve probably heard terms like CAC filing and FIRS tax filing thrown around. While they sound similar and both involve your business compliance, they serve very different purposes—and confusing one for the other can get you into avoidable trouble.

In this article, we’ll break it down in plain English:
What CAC and FIRS actually do
The difference between their filings
What your business needs to do to stay compliant with both

First, Who Are These Bodies?

Corporate Affairs Commission (CAC)

CAC is the government body that registers businesses in Nigeria. Think of them as the agency that gives your business a legal identity.

Once your business is registered—whether as a Business Name, Limited Liability Company (LLC), or Incorporated Trustee—you’re under CAC’s radar for certain filings.

Federal Inland Revenue Service (FIRS)

FIRS, on the other hand, is the tax authority. They’re in charge of collecting taxes from companies and individuals, including VAT, Company Income Tax (CIT), Withholding Tax, and more.

So while CAC says “you exist legally,” FIRS says “you owe tax based on your business activity.”

So, What’s CAC Filing?

CAC filing is more about business updates and annual confirmations.

Once you register your business, you’re expected to do:

• Annual Returns to CAC

• Update records like business address, directors, shareholders, etc.

Annual Return to CAC is basically saying,
“Hey CAC, we’re still in business. Here’s our current info.”

For small businesses, you’re not required to show profit or financial  statement—just to show either your business is active or dormant. There is a need for an audited account for registration under Part C. That include Churches, Foundations etc.

Penalties for not filing CAC Annual Returns will lead to:

• Late fees

• Having your business listed as “inactive”

• Eventually being delisted or struck off

What About FIRS Tax Filing?

FIRS tax filing is all about your business income and tax responsibilities.

You’re expected to file and pay:

• Company Income Tax (CIT) – based on your business profit

• Value Added Tax (VAT) – monthly, based on sales

• Withholding Tax – if you deduct tax from payments to suppliers or contractors

• Education Tax,  Nigeria Police Trust Fund, and more (depending on size of your business)

These filings include:

• Audited Financial statements

• Tax computations

Penalties for failing to file FIRS taxes can result in:

• Fines 

• Interests on unpaid taxes

• Legal action or tax audit

• Issues getting Tax Clearance Certificate (TCC)

The Key Differences at a Glance

So, Which One Does My Business Need to Do?

Short answer: Both.
If your business is registered, you’re expected to:

• File Annual Returns with CAC yearly

• File Taxes with FIRS monthly and annually, depending on activity

Even if your business didn’t make money this year, you still need to:

• File “No Activity” Annual Return with CAC

• File NIL tax returns with FIRS (e.g., VAT, CIT)

 Why It Matters

Staying compliant with both CAC and FIRS:

• Protects your business from penalties

• Keeps your business active and in good standing

• Makes it easier to apply for loans, grants, or contracts

• Helps you get a Tax Clearance Certificate (TCC), which is often required for government and corporate deals

Conclusion

CAC and FIRS filings aren’t the same, but both are essential to keep your business safe and credible. Think of CAC as your legal identity manager and FIRS as your financial accountability partner.

And if keeping up with all these filings feels overwhelming, that’s where MARB Corporate comes in.

We help business owners:

• Stay up to date with CAC and FIRS compliance

• File all the right documents, on time

• Avoid penalties and maintain good standing

Need help?

Telephone: +234 808 324 0193
Email: marbconcepts@gmail.com