Nigeria company income tax act pdf

This law makes provisions for the taxation of companies in nigeria. Nigerian value added tax system and the concept of basic food. The amount charged is 30% o the profit earned in the year preceding assessment. Provided that where any other income accrues to a person serving as other rank not bein g income by way of personal. Companies are mandated by law to pay company income tax cit in nigeria based on the profit. Part ii imposition of tax and profits chargeable 9. In the country the tax charging is governed by the cita or the. Appeal provisions of companies income tax act to apply with certain exemptions. Companies income tax act an act to consolidate the provisions of the companies income tax act 1961 and to make other provisions relating thereto.

This act shall apply to mainland tanzania as well as tanzania. Understand how company income tax is computed in nigeria. The main body that collects taxes in nigeria is firs. Company income tax is one of the most important sources of revenue collection for the government of nigeria. The company income tax act in the law that regulates the taxation of all limited liability company doing business in nigeria private and pubic limited companies alike, other than those. If you dont have a tax manager in your company, who can calculate. Subject to the foregoing provisions of this part of this act, the provisions of sections 51, 53 and 54 of the companies income tax act and of any rules made or deemed to have been made thereunder shall, with any necessary modifications, apply, in the case of a. Cita exempts from tax the profits of companies engaged in certain public. Cit is governed by companies income tax act cita, cap c21, lfn 2004 as amended. The tax is payable by all companies at the rate defined by the companies income tax act cita 1.

However, before that tax is paid the tax authority provides steps that must be. An act to consolidate the provisions of the companies income tax act 1961 and to. This act may be cited as the income tax amendment act 2014, and commences on the pt day of july 2014. Company income tax cit the principal law is the companies income tax act cita which imposes cit on profits accruing in, derived from, brought into or received in nigeria. Companies income tax amendment act, 2007 arrangement of sections section 1.

Corporate tax rate in nigeria is expected to reach 30. Personal income tax act arrangement of sections part i imposition of tax and income chargeable section 1. Federal republic of nigeria companies income tax act 19. The personal income tax act, 2004 is now amended by the personal income tax amendment act, 2011. This act may be cited as the income tax act, 2004, and shall come into operation on the 1st july, 2004. Contentious issues in value added tax act and administration in nigeria being paper presented at the citn mptp at ibadan. Companies income tax act arrangement of sections part i repealed part 11 imposition of tax and profits chargeable section 9. Wht is not really a distinct tax type and therefore has no legislation of its own. How to calculate company income tax in nigeria legit. Te tax law regulating taxation of individual is the income tax management act itma of 1961 which. Dividends and tax on interim dividends paid by nigerian companies. Interpretation in this act, unless the context otherwise requires accounting period in relation to a company engaged 111.

Withholding tax in nigeria administration and rates. This act may be cited as the petroleum profits tax act. You can read the full provisions of the act here companies income tax act. Fourth schedule warrant and authority to levy by distress under the companies income tax act fifth schedule funds, bodies and institutions in nigeria to which donations may be made under section 25 of this act sixth schedule warrant and authority to enter premises, offices, etc.

And for related matters 16th day of april, 2007 enacted by the national assembly of the federal republic. Nigerian companies are taxed under the companies income tax act cita. Thecompanies income tax act in this act referred toas the principal act is amended. It is only a mechanism for the collection of other taxes. The origin of the pit can be traced to the personal income tax act no 30 of 1996. Companies in nigeria are statutorily required to pay 30% of their taxable profit as company income tax. The relevant legislation for taxation of companies in nigeria, the companies income tax cit act, provides that the profits of a nonresident company shall be deemed to be derived from. Withholding tax is an advance payment of income tax.

This bill is to among other things amend the following tax provisions and make them more responsive to the tax reform policies of the federal government and enhance their. Highlights of companies income tax c it cit is governed by companies income tax act c ita, cap c21, lfn 2004 as amended cit is a tax imposed on profit of a company from all sources the rate of tax is 30% of total profit of a company some profits are exempted from cit provided they are not derived from trade or. In principle, withholding tax is a payment on account of the ultimate income tax liability of the taxpayer or company. Fourth schedule warrant and authority to levy by distress under the companies income tax act fifth schedule funds, bodies and institutions in nigeria to which donations may be made under. As a limited liability company, you are liable to pay company income tax. Consequently, its application is provided for in the. Imposition of tax on profits of companies derived from trade, business. Overview of personal income tax in nigeria explained. An act to consolidate the provisions of the companies income tax act 1961 and to make. Charge of tax on interest relating to foreign and agricultural loans and certain reliefs. Federation of nigeria, 2004 as amended by the companies income tax. This follows many years of agitation for the personal income tax law in nigeria to. This service even created the tax calculator for corporations in nigeria. Part i repealed part 11 imposition of tax and profits chargeable.

This, in relation to what they do, where they live or any other issues reconized by the law. Payment of minimum tax by lossmaking companies or companies whose tax calculation show no tax payable. By taiwo oyedele the personal income tax amendment act 2011 was officially gazetted on tuesday. Corporate tax laws and regulations nigeria covers common issues in corporate tax laws and regulations including capital gain, overseas profits, real estate, antiavoidance. Personal income tax act is a topic everyone should know, whether you are an employee or an employer. Tax expenses allowable for deduction from profit in nigeria. Federal republic of nigeria council on foundations.