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  Businesses in Nigeria are required by law to file their tax returns annually. A tax return is a document that is filed to report income, claim deductions, calculate tax liability, and pay relevant taxes. If you don’t already know how to file your small business taxes, you’ll want to learn about it, just so you can stay on the right side of the law.
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Taxes are collected at all levels of government. At the federal level, there’s the Federal Inland Revenue Service (FIRS). This agency collects VAT, Company Income Tax, and Capital Gains Tax, among others. The State Inland Revenue Services at the state level collect Personal Income Tax, Business Premises Tax, and Development Levies. Local Government Revenue Committees gather levies for parks, shops, kiosks, and refuse disposal.

Documents You Will Need for Filing Tax Returns

You will need these documents to file your taxes:
  • Tax Identification Number (TIN) or RC number
  • Tax return forms that have been completed
  • Audited financial statements (including a balance sheet and profit and loss statement)
  • Capital allowance schedules detailing capital allowances claimed
  • Withholding tax credit notes
  • Tax exemption and compliance certificates
  • Previous year’s losses carried forward, evidence of claimed deduction, and other evidence
  • Tax computation schedule
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Steps to Filing Your Small Business Taxes in Nigeria

You can take the following steps to file small business taxes in Nigeria:
  • Register your business with the relevant tax authorities if you haven’t already done so, to get a Tax Identification Number (TIN). You can do this online via the Joint Tax Board registration portal, or at any of the FIRS or state IRS offices nationwide
  • Get the documents listed above together
  • Obtain and fill out the tax forms relevant to your type of business (you can download them from the FIRS website)
  • Login to the FIRS online filing system to file your tax returns
  • Upload the documents, and ensure that you have accurately calculated your taxable income and tax liability
  • Get confirmation that your filing documents have been received

When Should You File Your Tax Returns?

Company Income Tax should be filed not later than 6 months after your business’s accounting year end. Value Added Tax (VAT) returns must be filed within 21 days after the end of the VAT period. There are varying due dates for other returns.
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Final Words

As is the case elsewhere in the world, SMEs in Nigeria have to file small business taxes with tax authorities. They must know what to report, and how to do so. This article has laid out a short stepwise process for sending in your tax returns. You may use it as a guide for your next filing.
Got a suggestion? Contact us: editor@connectnigeria.com
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This article was first published on 5th January 2025

ikenna-nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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