Who needs to file?
Every company. No exceptions.
This applies whether you:
Made a profit or a loss
Owe tax or don't owe tax
Have a tax exemption or don't
If your business is registered with CAC, you file a return. That's the rule.
What you need to include in your return
Your annual tax return must contain:
1. Financial statements
Most companies: Audited financial statements showing all sources of profit
Small companies: You can submit a statement of accounts that you've signed and verified instead of full audited statements (see below for who qualifies)
2. Tax calculations
Tax computations
Capital allowance computations
Your effective tax rate
3. Signed declaration
A principal officer (director or company secretary) must sign and confirm the information is accurate.
Special case: Foreign companies
If your company isn't based in Nigeria but makes money here, you need audited statements specifically for your Nigerian operations, signed by a Nigerian certified accountant—unless withholding tax already covers your full liability.
Are you a small company?
Small companies get relief from the full audit requirement. Here's how to know if you qualify:
You're a small company if you meet ALL of these:
✅ Annual turnover: ₦50 million or less
✅ Fixed assets: Less than ₦250 million
✅ Type of business: NOT providing professional services
You're NOT a small company if:
❌ You provide professional services—even if you earn less than ₦50 million
Professional services include: Law firms, consulting firms, accounting practices, medical practices, engineering consultancies, and similar businesses.
What this means for you
If you're a small company: You can file a statement of accounts that you've signed yourself instead of getting a full audit. This saves time and money.
If you're not: You need fully audited financial statements.
Calculating your turnover for VAT purposes
When you're figuring out if you're under the ₦50 million threshold, don't count:
Money from selling your business assets (like equipment or property)
Money from selling your whole business or part of it
Final sales when you're permanently closing down
Example: You made ₦45 million in regular sales and ₦8 million from selling old equipment. For the threshold, you only count the ₦45 million. You still qualify as a small company.
When to file
Regular companies
File within 6 months after your accounting year ends.
Example: If your accounting year ends December 31, 2026, your return is due by June 30, 2027.
New companies
File within 18 months of incorporation OR 6 months after your first accounting period ends—whichever comes first.
Example: Incorporated in March 2026, accounting year ends December 2026. Your return is due by either September 2027 (18 months) or June 2027 (6 months after year-end)—so June 2027 is your deadline.
Closing your business?
File your final return within 6 months of permanently stopping operations.
The new payment system: Monthly installments
This is the major change. You can't wait until year-end to pay anymore.
How it works
Before: Estimate your tax for the year, pay it all at once when you file.
From 2026: Break your estimated tax into equal monthly payments.
Payment schedule
First payment: Due by the end of month 3 of your accounting year
Following payments: Due by the last day of each month
Final payment: Due when you file your annual return (reconciles estimates with actual tax)
Example timeline for a January-December accounting year:
March 31: First installment due
April 30: Second installment due
May 31: Third installment due
...and so on through December
June 30 (following year): Final reconciliation when you file your return
Why monthly payments?
The government wants steady cash flow and earlier compliance. Think of it like paying your rent monthly instead of saving up for one huge annual payment.
Record keeping requirements
What to keep
All books and records of account for your business.
How to keep them
In English
For at least 6 years
Available for inspection when requested
What happens if you don't
Administrative penalty of ₦100,000 if you can't produce records when asked.
Penalties for non-compliance
Late filing
₦100,000 for the first month
₦50,000 for each additional month
Example: File 3 months late = ₦100,000 + ₦50,000 + ₦50,000 = ₦200,000 in penalties
Late payment
10% penalty on the unpaid amount
Plus interest at the Central Bank's Monetary Policy Rate (plus a spread)
These add up quickly. It's cheaper to file and pay on time.
How Kuda can help
Transaction records
Download your Kuda Business account statements anytime through the app. These help with:
Preparing your financial statements
Tracking business income and expenses
Supporting your tax computations
Payment scheduling
Set up monthly transfers for your tax installments so you never miss a deadline.
Record keeping
Your Kuda transaction history is stored and accessible, giving you a reliable record of business activity.
Common questions
Q: What if I made a loss this year? Do I still file?
Yes. Every company files, regardless of profit or loss.
Q: I'm a consulting business earning ₦40 million. Am I a small company?
No. Professional services businesses don't qualify as small companies, regardless of income.
Q: I earned ₦48 million in sales and ₦5 million from selling equipment. Do I qualify as small?
Yes. You only count the ₦48 million in regular sales. Equipment sales don't count toward the threshold.
Q: Can I pay my full tax at once instead of monthly?
The law requires monthly installments starting from month 3. Check with your tax advisor, but monthly payments are the standard.
Q: What if I miss a monthly payment?
You'll owe the payment plus a 10% penalty plus interest. It's better to pay late than not at all, but on-time is best.
Q: Where do I file my return?
File with the Nigeria Revenue Service (NRS), the new name for what used to be FIRS. Their processes and systems remain the same during the transition.
Q: Do I need to keep physical books or can I use digital records?
The law requires "books or records of accounts" but doesn't specify format. Digital records stored securely should be acceptable, but make sure they're accessible and in English.
This article explains requirements under the Nigeria Tax Administration Act, 2025 and the Nigeria Revenue Service (Establishment) Act, 2025. Tax laws can be complex and situations vary, so please talk to a qualified tax advisor for guidance specific to your business.