Companies Income Tax Act, 2007
The Companies Income Tax Act (CITA) is the principal legislation governing the taxation of companies in Nigeria. It defines the scope of company income tax, taxable income, allowable deductions, tax rates, and compliance obligations. The Act applies to all companies incorporated in Nigeria and to foreign companies with a permanent establishment in Nigeria.
Legal area: Law governing the assessment, collection, and administration of taxes.
Year enacted: 2007
Full text: https://lawsofnigeria.placng.org/laws/companies-income-tax-act.html
Key Provisions
- Section 8: Charge of tax on company profits
- Section 9: Profits of a company to include all income from all sources
- Sections 24-32: Allowable deductions including capital allowances and depreciation
- Section 40: Tax incentives for companies in pioneer industries
- Section 53: Withholding tax on dividends, interest, and royalties
- Section 55: Filing of returns and deadlines for compliance
Significance
CITA is the foundation of corporate taxation in Nigeria. It has been amended numerously, most significantly by the Finance Acts of 2019, 2020, and 2021 which adjusted rates, broadened the tax base, and addressed issues including digital taxation and minimum tax provisions.