Company Income Tax in Nigeria: Filing Deadlines, Payments and Records Businesses Must Keep

Under Nigeria’s tax framework, these responsibilities apply even when a company’s tax computation shows no tax payable. Here is what businesses need to know.

1. When Must a Company File Its Income Tax Return?

Under Section 11 of the Nigeria Tax Administration Act 2025, every company is generally required to file an annual self assessment return with the Nigeria Revenue Service (NRS), whether or not it has tax to pay for that year.

For a company that has been in business for more than 18 months, the return must generally be filed within six months after the end of its accounting year.

For example, if a company’s accounting year ends on 31 December 2026, its company income tax return will generally be due by 30 June 2027.

Newly incorporated companies have a different deadline. They must file within 18 months of incorporation or within six months after the end of their first accounting period, whichever comes first.

A company that permanently ceases business in Nigeria must also file its return for the year it stops operating, together with any outstanding returns, within the applicable statutory deadline.

These timelines matter because a company should plan its tax preparation around its own accounting year, rather than assume that every business has the same filing date.

1. What Must a Company Submit With Its Tax Return?

A company’s annual tax return involves more than entering a figure for profit. The filing generally includes:

• A completed company income tax self assessment form.
• Audited financial statements, where required.
• A tax computation showing how the company’s taxable profits or losses were determined.
• A capital allowances computation, where applicable.
• Evidence of payment of the tax due.
• Other prescribed information, including an effective tax rate computation and additional tax payable where applicable.

The Act provides an exception for small companies, which may submit a statement of accounts attested to by the taxpayer instead of audited financial statements.

The exact documents required depend on the company’s circumstances and applicable rules. Businesses should therefore confirm the current filing requirements before submitting their returns.

1. When Should a Company Pay Its Company Income Tax?

Filing a return and paying the tax due are related obligations, but they are not the same thing.

A company must calculate its tax liability and ensure that the amount due is paid within the applicable timeline. Evidence of payment is part of the annual return requirements.

Companies that expect difficulty paying the full amount at once should not simply delay payment. The tax administration framework allows a company that files its self assessment return within the statutory deadline to apply in writing for permission to pay its assessed income tax in instalments. Approval is not automatic, and the application must meet the relevant conditions, including payment of a portion of the tax due. The final instalment must be paid by the applicable filing deadline.

Businesses should confirm the conditions with the NRS before relying on an instalment arrangement.

1. What Happens If a Company Files Late or Fails to Pay?

Late filing and late payment can create separate financial consequences.

Under the Nigeria Tax Administration Act 2025, failure to file a required company income tax return attracts an administrative penalty of ₦100,000 for the first month of default and ₦50,000 for each subsequent month.

Late payment of tax also attracts a penalty of 10% of the unpaid tax, together with applicable interest. For naira-denominated tax liabilities, the interest rate is governed by the applicable statutory framework and the relevant rate determination.

These costs can accumulate while a company’s tax obligations remain unresolved. Incomplete records or delays in preparing financial statements can also make it harder to meet filing deadlines.

A practical step is to work backwards from the filing date, allowing enough time to reconcile transactions, review expenses, prepare tax computations and resolve discrepancies before submission.

1. What Records Should a Company Keep?

Under Section 31 of the Nigeria Tax Administration Act 2025, companies must maintain books and records containing sufficient information about their transactions to determine their tax liabilities. This obligation applies whether or not the company is liable to pay tax.

Records should be organised so that the company can explain where its income came from, how its expenses were incurred and how the figures in its tax return were calculated.

Depending on the business, relevant records may include:

• Income records: Sales invoices, receipts, contracts, bank statements and other evidence of money earned.
• Expense records: Supplier invoices, receipts, rent agreements, utility bills and supporting documents for business expenses claimed.
• Payroll records: Salary schedules, employee payment records, PAYE information and pension contribution records, where applicable.
• Asset records: Purchase documents for equipment, vehicles and other business assets, together with disposal records and information needed to calculate capital allowances.
• Financial statements and tax computations: Annual accounts, tax adjustment schedules, capital allowances computations and submitted tax returns.
• Payment records: Evidence of company income tax payments and other relevant tax remittances.
• Loss and relief records: Documents supporting losses carried forward, deductions, incentives or other tax treatments claimed.

Keeping a bank statement alone may not be enough to support every transaction. For example, a payment shown on a statement may not establish what was purchased or whether the expense qualifies for a tax deduction. Supporting documents help explain the nature and purpose of the transaction.

1. How Long Must These Records Be Kept?

Section 31 of the Nigeria Tax Administration Act 2025 requires relevant books and records to be retained for at least six years after the year of assessment to which the income relates.

This means businesses should not discard records simply because a tax return has been filed or the tax has been paid.

A consistent filing system, whether digital or physical, can help a company retrieve documents when preparing returns, responding to questions from the tax authority or reviewing earlier tax computations. Records should be complete, readable and organised by accounting period.

Stay Prepared for Your Company’s Tax Obligations

Company income tax compliance is easier to manage when financial information is accurate, organised and available when needed. Waiting until a filing deadline approaches can make it harder to identify missing documents, explain transactions and prepare a reliable tax computation.

LessaTax helps freelancers, remote workers and business owners organise financial records, track income and work related expenses, and keep important information accessible.