Taxes can be categorized into two; Corporate Income Tax and Personal Income Tax.
These are administered by these tax Authorities:
1. Federal Inland Revenue Services – Corporate taxes
2. States Board of Internal Revenue – Personal Income Tax
Company Income Taxes
Company Income Taxes in Nigeria have various Acts of Parliament giving effect to them. Significant among these are:
1. Company Income Tax Act – 1990
2. Petroleum Profits Tax Act – 1990
3. Education Tax Decree 7 1993
4. Value Added Tax Decree – 1993
5. Withholding Tax (CITA 1990 LFN CAP 60 S.60-64; PPTA S. 50A+55A
6. Capital Gains Tax Act – 1967
On engagement we shall first formally register the Company with the Federal Inland Revenue for the purpose of these taxes.
The nature of the operations of the company will guide us in determining whether the Company Income Tax Act 1990 or Petroleum Profits Tax Act 1990 will be applied to Tax Returns of the Company each Year. These two acts are mutually exclusive in their application to a specific company.