When is company income tax due for payment, and what is the penalty for late filing?

Q: When is company income tax due for payment, and what is the penalty for late filing?

In 2026, the Nigeria Tax Administration Act 2025 (NTAA) has sharpened the timeline for filing and payment to ensure faster revenue collection. While the "due date" remains linked to your accounting year-end, the financial consequences of missing it have become much more severe. 1. CIT Due Date (Filing & Payment) For standard companies (turnover > ₦100 million), the deadline follows a strict "Six-Month Rule": Timeline: You must file your CIT returns and pay the tax due no later than six (6) month

In 2026, the Nigeria Tax Administration Act 2025 (NTAA) has sharpened the timeline for filing and payment to ensure faster revenue collection. While the "due date" remains linked to your accounting year-end, the financial consequences of missing it have become much more severe.

1. CIT Due Date (Filing & Payment)

For standard companies (turnover > ₦100 million), the deadline follows a strict "Six-Month Rule":

Timeline: You must file your CIT returns and pay the tax due no later than six (6) months after the end of your company's accounting year.
- Example: If your financial year ends on December 31, 2025, your CIT return and payment are due by June 30, 2026.
New Companies: For a newly incorporated business, the first return is due within 18 months of incorporation or 6 months after its first accounting period ends, whichever comes first.

2. Penalties for Late Filing (NTAA 2025 Standard)

The new law has introduced a "graduated" penalty system that makes long-term non-compliance extremely expensive:

Delay Period	Administrative Penalty
First Month of Default	₦100,000
Each Subsequent Month	₦50,000

Note: This penalty applies even if you have no tax to pay (a "Nil" return). The fine is for the failure to submit paperwork, not just for the money owed.

3. Penalties for Late Payment (Remittance)

If you file your papers but fail to actually send the money to the Nigeria Revenue Service (NRS) by the deadline, a double-penalty applies:

Administrative Penalty: A flat 10% of the unpaid tax amount.
Interest: Charged at the CBN Monetary Policy Rate (MPR). In 2026, with the MPR sitting at a high rate, this interest compounds daily, making tax debt balloon quickly.

4. Personal Liability for Directors (New in 2026)

The 2025 Act contains a "Piercing the Corporate Veil" clause. If a company fails to pay its tax, the NRS can now hold Directors, Managers, and Company Secretaries personally liable.

The Penalty: If convicted of willful tax evasion or non-remittance, an officer of the company can face up to 3 years in prison, or a fine equal to the tax owed plus a 50% penalty.