Computation Of Company Income Tax In Nigeria

All you need to know about the computation of the company income tax in Nigeria

Computation Of Company Income Tax In Nigeria
The Nigerian government as well as every other government owe their citizenry some certain obligations which they are trying to carry out.
These obligations range from jobs, electricity, education, transportation and even up to food, but can only be possible when they have some sufficient funds available in their budget. From the time immemorial, the government has been deriving a good percentage of these funds from the revenue of crude oil sales, however the price of crude oil has bow downturned and the need to get another source of revenue comes in. This is when we begin to talk about the computation of company income tax in Nigeria.
The most reliable source of internal revenue for any government is the TAX. Taxation no doubt seems like the most working way of generating revenue for the government. The government imposes taxes on incomes and profits, whether for individuals or corporate bodies, organizations that engage in both internal and external trades and even more.

As time went on, some individuals in their bid to escape or evade tax payments established companies, and the government imposed the taxes on the corporate bodies also. There are also a lot of established laws helping to stop people evading laws and to participate in some things like contesting of a public/political position, you would need to present an evidence of constant participation in tax payment for some certain duration of time. These policies were established because of some cases where individuals have different identities with their organizations and companies, in a bid to escape the payment of taxes. When the corporate bodies are made to pay too, then there surely would be no way to evade the responsibilities.
The minimum tax computation for companies in Nigeria and the company income tax rate in Nigeria have been kept in place by the government. The companies income tax is computed by the Company Income Tax Act (CITA). According to Section 9 of the of the Companies Income Tax, the companies are to be charged based on their net income or general profit. There are also some well defined guides on the history of company income tax in Nigeria from which you will get to know of the advantages of participating in the tax. To help you determine your companies net income, you will first need to get your trading receipt and from it deduct your trading expenditures.

You should also take note of the fact that not all the expenditures or receipts are permitted to be brought into the trading accounts which will be for the taxing purposes. In subsequent posts on taxing we will talk about how to calculate personal income tax in Nigeria. Taxable income computing is essential for the determination of the tax liability by the tax payers. You may also seek to reduce your tax liability by making claims of an item under your expenditure. However, the tax authority will also be making efforts to reduce the tax payers deductible expenditure so as to enable them maximize the national tax yield.

This therefore makes the computation of tax payable by the companies and other bodies very essential. In the computation of the chargeable profit for the companies' income tax under the CITA, you will first attempt to calculate the aggregate gross profit. You can do this by summing all the income which you derived from business, trade, interest, royalty, rent and other sources. Please take note that not all income generated by companies are liable for the taxation and you can see that in the section 23 of the CITA.

Some of them include:
- The profit of all co-operative societies which have been registered under any laws which relate to the co-operative societies.
- The profit of any companies which engage in educational activities or any ecclesiastical charity of a public character.
- The profit of any companies which were formed for the promotion of sporting activities.
*The profit of any companies being registered friendly or statutory.

Before you go

Thanks once more for reading! We believe you enjoyed this article, if not don't hesitate to use the feedback form. Positive and negative remarks are always welcomed. You can also use the form to make further inquiries. If you need further help, you can also request for an article on any topic and it'll be written and delivered to your email in a jiffy, 100% free.
Please avoid copying our articles, we spend a lot of resources producing them and they are all protected by DMCA. We might take legal actions against defaulters. Kindly use the share button instead to let your friends see them or copy the link(s) to refer them here.
Some of our posts contain affiliate links or referrals. We may earn commissions for promoting products and services, however we only recommend what we trust!

Affiliate Marketing,15,Africa,29,African Capitals,1,African Cities,1,African Countries,1,Agriculture,18,Airtel,6,Anxiety,4,Art,2,Asia,4,Authors,1,Automobiles,11,Awards,2,Belgium,1,Betting,4,Biography,21,Bitcoins,1,Blockchain,3,Blogging,62,Business,83,Careers,72,Celebrities,23,Children's Health,8,China,1,Cooking,1,Corruption,1,Crime,1,Cryptocurrency,4,Culture,4,Democratic Republic of the Congo,1,Dental Health,2,Dogs,1,Drop Shipping,1,Economy,1,Education,47,Election,1,Electricity,1,Entertainment,36,Entrepreneur,2,Events,1,Examinations,3,Family,4,Fashion,12,Fellowships,1,Festivals,5,Finance,14,First Aids,3,Food,6,France,1,Freelancing,27,Games,3,Ghana,2,Graphics Designing,3,Guest Post,116,Hacking,2,Hair,3,Health,68,Herbal Medicine,1,History,3,Homes,5,Hotels,2,House Care,6,How To,136,Imo State,5,India,4,Infographics,2,Information Marketing,2,Inspirational,7,Instant Noodles,1,Insurance,2,Internet,115,Issues,16,JAMB,1,Kenya,2,Lagos State,1,Legal,1,Life Savings,4,Lifestyle,11,Loans,3,Making Money Online,67,Marketing,39,Men,9,Men's Health,10,Money Laundering,1,Morocco,1,Movies,2,MSF,1,MTN,1,Music,22,Nigeria,61,Nutrition,17,Opportunities,6,Pets,2,Phones,7,Politics,2,Real Estate,1,Recipes,1,Relationships,12,Religion,2,Retirement,1,Reviews,7,Romance,2,Safety,15,Saving,7,Scamming,7,Scholarship,7,Security,8,Sewing,1,Sexual Health,1,Social Media,34,South Africa,2,Sponsored,9,Sports,4,Students,3,Tech News,12,Technology,34,Teens,17,Tour,15,Traditions,1,Tutorials,14,University,2,Videos,3,WAEC,1,West Africa,1,Women,12,Women's Health,13,Writing,6,YouTube,3,
Information Guide Africa: Computation Of Company Income Tax In Nigeria
Computation Of Company Income Tax In Nigeria
All you need to know about the computation of the company income tax in Nigeria
Information Guide Africa
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy