Authoritative Updates from our
Tax Advisory Services in Abuja

The 2026 Finance Act amendments introduce scope changes to VAT-exempt supplies, clarify input VAT recovery on mixed-use expenses, and tighten monthly filing windows.

• Monthly VAT returns now due by the 21st of each month (not the last working day).
• New exemptions apply to certain fintech products and agri-inputs verify if your products qualify.
• Input VAT on vehicles is no longer fully recoverable unless used exclusively for business.
• Penalties for late filing have increased to 5% of tax due per month.

Missing FIRS deadlines triggers automatic penalties and interest. Here are the key dates every Nigerian business must track:

• CIT: 6 months after year-end (e.g., 30 June for a 31 December year-end).
• VAT: 21st of the following month.
• PAYE / WHT: 10th of the following month (state boards).
• Annual Returns: 60 days after AGM or 18 months after incorporation.
• Tertiary Education Tax (EDT): 2% of assessable profit, filed with CIT.

PAYE is deducted monthly by employers and remitted to the relevant State Inland Revenue Service (SIRS) by the 10th of the following month.

• Tax-free allowance: 20% of gross income + ₦200,000 (or ₦300,000, whichever is higher), plus Housing, Transport and Meal allowances.
• Tax rates: 7% (first ₦300K) → 11% → 15% → 19% → 21% → 24% (above ₦3.2M).
• Pension contributions (8% employee, 10% employer) are deductible from gross before tax.
• NHF, life assurance premiums, and approved gratuity schemes also reduce taxable income.

The Corporate Affairs Commission has stepped up enforcement of annual return filings following the CAMA 2020 amendments.

• Annual returns are due within 42 days of the AGM, or 30 June for small companies not required to hold AGMs.
• Late filing attracts a daily fine of ₦1,000 per day for private companies (₦2,000 for public).
• All returns must now be filed electronically via the CAC e-portal manual filing is no longer accepted.
• Directors' personal details must be current CAC can strike off companies with outdated records.
• Beneficial ownership information is now mandatory under the BOSC register.

Input VAT is the VAT a registered business pays on its purchases. It can be offset against output VAT (VAT charged to customers) but only if claimed correctly.

• You must hold a valid tax invoice from the supplier with their TIN and VAT number.
• Input VAT on exempt supplies (e.g., basic food, medical goods) cannot be recovered.
• Mixed-use assets (partly business, partly personal) require apportionment only the business portion is claimable.
• Vehicles purchased for general use: no longer fully recoverable following 2026 Finance Act.
• Claims must be made in the VAT return for the period in which the invoice was received.

Withholding Tax (WHT) is deducted at source by the payer of certain transactions and remitted to FIRS. The payer not the recipient is liable if WHT is not deducted and remitted.

• 10% on dividends, rent, and interest payments.
• 5% on professional fees, management fees, and contracts.
• 2.5% on construction contracts and survey fees.
• Remittance deadline: within 30 days of deduction (or 21 days for FIRS-designated withholding agents).
• Failure to withhold makes the payer liable for the full WHT amount plus penalties.