1. Companies Income Tax(CIT):
Under Companies Income Tax Act you have to pay Companies Income tax if you are a resident or non-resident company incorporated in Nigeria.
For resident companies and organization-
Companies and organizations prepare and submit their annual self assessment tax return according to the FIRS specifications. This has to be done with the proof (e.g. e-ticket issued from the bank) of payment of the full amount or first installment of the Tax return.. The payments are made to designated banks.
For non-resident companies and organization-
Companies make their tax payment through remittance. Their tax is deducted at the source and deposited to designated banks. These companies’ tax subject to Withholding Tax (WHT) deduction on their earning in Nigeria. This will be their tax upon filing tax return.
2. Petroleum Profit Tax (PPT):
The Petroleum Profit Tax is subject to any resident company or person in charge of a non-resident company who are exploring for petroleum or producing it. This also includes any liquidator, receiver, or agent of liquidator or receiver of any company carrying on petroleum operations in Nigeria.
The Petroleum Profit Tax is a type of pre-paid tax. You have to prepare and submit your annual tax return to JP Morgan Chase Bank, within five months of the end of each assessment year.
The payment is done mainly 2 segments of 12-13 phases. The first segment is the estimated annual return paid not later than February of each year. The tax due is than paid in 12 months installments throughout the year. In case of the accumulated actual tax exceeds the tax paid a 13th month payment can be paid. If the opposite occurs you will get the refund.
3. Value Added Tax (VAT) :
Any person or individual, corporate sole, organizations who consumes or buys any taxable product or service will have to pay Value Added Tax or VAT.
This tax is primarily collected by the seller when any taxable item or service is sold. The seller then nets off the VAT and submits it to FIRS through a designated bank. The bank immediately issues an e-ticket as evidence. When this is presented to the Integrated Tax Office (ITO) a e-receipt is issued.
4. Personal Income Tax (PIT) :
Individuals resident in Federal Capital Territory(Abuja), Nigerian armed force employee, non-resident earning or deriving income from Nigeria and officers of Nigerian foreign service will have to pay Personal Income Tax.
Persons who get paid through employment pay their Personal Income Tax through Pay As You Earn (PAYE) system. According to PAYE, employers deduct Personal Income Tax from the salaries of their Employees and pay it directly to FIRS through a designated bank on behalf of the employee in a monthly basis.
5. Withholding Tax (WHT) :
The Withholding Tax has no distinction of its own. This tax is only a mechanism to collect other taxes.
Various person may be subject to Withholding Tax deduction to balance their tax liabilities for different types of tax. WHT deductions are regarded as advance payments (or payments on account) of the relevant tax liability that will arise from the tax returns of the period concerned.
When a person benefits from any payment and the income is taxable, the Withholding Tax is withheld by the payee. It is then directly remitted to FIRS through a designated Bank.
6. Educational Tax (EDT) :
All the companies registered in Nigeria, in other words, all the companies subject to Companies Income Tax (CIT) are also liable to Educational Tax(EDT).
Educational Tax is also prepared and submitted with annual self assessment of Companies Income Tax to designated Bank.
7. Stamp Duties (STD) :
Items or persons subject to Stamp Duties tax are written documents relating things between individuals or companies or group of soles. Stamp Duties may include instruments such as financial transaction, article of association between companies, statements, deals, bonds etc.
Companies or persons related with the stamp duties must submit all the instruments to the Stamp Duties Office for stamping. The duty is paid directly to FIRS through designated bank.
8. Capital Gains Tax (CGT) :
All the companies registered in Nigeria which earn any capital gains or gains on the disposal of any form of assets whether it is in Nigeria or not are liable to Capital Gains Tax.
Capital Gains Tax is calculated and submitted with Companies Income Tax to FIRS through Designated Bank.
9. National Information Technology Development Fund (NITDF) Levy:
All the companies in Nigeria, who are operating as GSM provider or telecommunication company, Cyber company or internet service provider, bank, insurance etc. and has an annual turnover of N100,000,000.00 and above are liable to NITDF Levy.
Companies chargeable, pay the levy with their Companies Income Tax. The companies have to compute 1% of their profit and pay it through the designated bank.