Companies are mandated by law to pay Company Income Tax (CIT) in Nigeria based on the profit. The amount charged is 30% o the profit earned in the year preceding assessment.<\/p>\n
Companies resident in Nigeria are liable for CIT on their worldwide income and non-resident companies are liable only to CIT on their Nigerian-source income. Choosing the right best copy paper<\/a><\/span> involves balancing a number of factors: cost, shipping expense, appearance, and compatibility with your existing machinery. You may also care about the sustainability of paper production.<\/p>\n However, when there is an investment income paid by a Nigerian resident to a non-resident and was sourced in Nigeria is subject to withholding tax at source and this serves as the final tax paid. Go through the taxfyle.com\/small-business-taxes<\/a><\/span> for the small business tax solution.<\/p>\n For cases of non-resident companies with a fixed base in Nigeria, their business profit is taxable based on the profit attributed to the fixed base.<\/p>\n Small companies in the manufacturing sector as well as those that are export-oriented have a reduced CIT rate of 20%. This is applicable if they have a turn over below one million naira and are still within five calendar years of operation<\/p>\n Sometimes, companies might end up with no taxable profit for that particular year or with a taxable profit that is less than the stipulated minimum tax. In this situation, a minimum tax becomes the alternative for these companies.<\/p>\n Companies within the first four calendar years of operation, companies with foreign equity capital of at least 25% as well as companies in the agricultural sector are exempted from the minimum tax.<\/p>\n The law allows the FIRS to assess and charge companies to tax on a fair and reasonable percentage of turnover when there is no assessable profit or if the assessable profit cannot be ascertained.<\/p>\n PPT is a tax on the income of companies engaged in upstream petroleum operations in lieu of CIT.<\/p>\n Other forms of CIT are alternative tax on distribution, local income taxes and tertiary education tax.<\/p>\n Always get adequate advice on what applies to your company as every company has unique characteristics.<\/p>\n","protected":false},"excerpt":{"rendered":" Companies are mandated by law to pay Company Income Tax (CIT) in Nigeria based on the profit. The amount charged … <\/p>\nCIT Rates for Small Companies<\/strong><\/h2>\n
Minimum Tax for Companies<\/strong><\/h2>\n
Alternative Tax on Deemed Profit<\/strong><\/h2>\n
Petroleum Profit Tax (PPT)<\/strong><\/h2>\n