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Tax Year

The tax year in Nigeria is the calendar year, from 1 January to 31 December . Alternative tax years may be allowed.

Tax Return Filing

Annual tax returns must be filed within 6 months of the close of the previous tax year (30 June for the tax year ending on 31 December) or within 18 months of the date of incorporation.

For the year of assessment 2022, the deadline for filing the annual tax return is extended from 20 June 2022 to 31 August 2022. Effective 1 January 2021, tax return filing requirements are amended to provide that a non-Nigerian company that is taxable in Nigeria is required to submit a return for the relevant year of assessment that contains the following:

Audited financial statements of the company (global) and financial statements of the Nigerian operations (local);
Tax computation schedules based on the profits attributable to Nigerian operations;
A true and correct statement containing the amount of profits for each and every source in Nigeria; and
Duly completed Companies Income Tax Self-Assessment Forms.

Non-Nigerian companies only earning income subject to final withholding tax are exempted from filing tax returns in Nigeria.

Capital Gains

Effective 1 January 2021, taxpayers who disposed of a chargeable asset are required to compute the capital gains tax bi-annually and file self-assessment returns in respect of the chargeable assets disposed of to the relevant tax authority. The due date for filling capital gains tax returns is the earlier of 30 June and 31 December immediately following the disposal.

Tax Payments

Effective 1 January 2020, Nigeria changed the tax payment rules, which include:

Tax must be paid on or before the due date for the tax return as a lump sum or in instalments (maximum up to three instalments);
If paid in instalments, the final instalment is due on or before the due date for the tax return;
Companies filing self-assessment returns are required to pay their taxes in full by the filing deadline (the option for six monthly instalments is not applicable); and
If taxes are paid in full at least 90 days before the tax return due date, a 2% bonus is provided for medium-sized companies, and a 1% bonus is provided for large companies, which may be used to set off against future tax liabilities.

The tax payment charged by an assessment (whether or not it is the subject of an objection or appeal) must be made within 30 days of the service of the notice of the assessment (60 days prior to 1 January 2021).

Capital Gains

Effective 1 January 2021, capital gains tax computed on disposal of a chargeable asset is to be paid as follows:

Chargeable assets disposed from 1 January in a year to 30 June of that year, not later than 30 June; and
Chargeable assets disposed from 1 July to 31 December each year, not later than 31 December.

Taxes can be paid electronically via online channels such as Remita, Interswitch, and NIBSS launched by the Nigerian Federal Inland Revenue Service (FIRS).

Previously, capital gains tax deadlines were aligned with income tax deadlines.

Availability of E-Filing

Effective 7 June 2021, e-filing is available via the TaxPro-Max e-Filing Solution of the Nigerian Federal Inland Revenue Service (FIRS).

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