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Does my company owe Companies Income Tax?

3 min read

Incorporating doesn't automatically mean a tax bill — whether your company owes Companies Income Tax (CIT), and how much, depends on its size.

Small companies pay 0%

Yes. Under NTA §56, a small company — gross turnover at or below ₦50,000,000.00/year and fixed assets at or below ₦250,000,000.00, excluding professional-services businesses — pays 0% Companies Income Tax. Filing is still required even at 0% owed; only the amount owed changes.

You still have to file, even at ₦0 owed

File a full annual CIT return within 6 months of your fiscal year-end, even though ₦0 is owed. New companies: within 18 months of incorporation or 6 months of your first accounting period, whichever is earlier.

If you don't qualify: the standard rate

Standard Companies Income Tax rates apply — enter your taxable profit (the figure from your accountant or latest management accounts, not your raw revenue) directly in the CIT calculator above to get an estimate at the flat 30% rate. That estimate doesn't include the 4% Development Levy or the 15% minimum effective tax rate that may apply to large companies — confirm your final liability with a tax professional.

Put this into practice

Check your own turnover and fixed assets against the small-company thresholds.

Frequently asked questions

Do I still need to file if I owe ₦0 in CIT?

File a full annual CIT return within 6 months of your fiscal year-end, even though ₦0 is owed. New companies: within 18 months of incorporation or 6 months of your first accounting period, whichever is earlier.

What if my company doesn't qualify as a small company?

Standard Companies Income Tax rates apply — enter your taxable profit (the figure from your accountant or latest management accounts, not your raw revenue) directly in the CIT calculator above to get an estimate at the flat 30% rate. That estimate doesn't include the 4% Development Levy or the 15% minimum effective tax rate that may apply to large companies — confirm your final liability with a tax professional.

Do registered companies pay tax differently from individuals?

Yes. Under NTA §56, a small company — gross turnover at or below ₦50,000,000.00/year and fixed assets at or below ₦250,000,000.00, excluding professional-services businesses — pays 0% Companies Income Tax. Filing is still required even at 0% owed; only the amount owed changes.

Is this official tax advice?

No — for guidance only, not tax advice.