TAXATION & COMPLIANCE

You’re right to pause on this—corporate investing in money market funds in Nigeria is treated differently from individual investing, and tax can materially affect your net return.
Let’s separate facts from confusion.
1. What tax law actually applies
The law you’re referring to is the Companies Income Tax Act (CITA).
Standard Company Income Tax (CIT) rate:
30% for large companies
20% for medium companies
0% for small companies (turnover ≤ ₦25 million)
So yes—30% is real, but it doesn’t apply blindly to every investment income.
2. How money market mutual funds are taxed for companies
This is where many people get it wrong.
Income inside a money market fund typically comes from:
Treasury Bills
Commercial Papers
Bank deposits
Now the key:
(A) Interest from government securities
Income from:
Treasury Bills
FGN Bonds
➡️ Generally tax-exempt, even for companies.
(B) Interest from bank placements / commercial papers
This is the tricky part.
Interest earned may be subject to Withholding Tax (WHT) ~10%
BUT for companies:
WHT is usually not final tax
It’s treated as advance tax
So: ➡️ You may still be assessed under CIT depending on total profits.
3. Why people mention “30% tax”
That 30% applies when:
The income is considered part of your company’s taxable profit
After deducting allowable expenses
Then: ➡️ Your company pays CIT on net profit, not directly on the investment amount.
4. Important nuance (very critical)
If your company is:
Small company (≤ ₦25m turnover)
➡️ You likely pay 0% CIT ➡️ Only WHT may apply (and sometimes even refundable)
Medium/Large company
➡️ Investment income can:
Increase taxable profit
Lead to CIT liability (up to 30%)
5. Do you pay “extra tax” on the mutual fund itself?
No separate “mutual fund tax”
But you may have:
Withholding Tax deductions
CIT impact at company level
So the tax is: ➡️ Indirect, not at the fund level—but at your company level
6. Practical example
Let’s simplify:
Your company earns ₦1,000,000 from MMF
WHT deducted = ₦100,000
If you’re a large company:
That ₦1M goes into your total profit
You may pay CIT (30%) on overall profit
But:
That ₦100k WHT is credited against your tax
7. What most corporate investors overlook
Money market funds are not fully tax-free for companies
Structure matters:
Direct T-bills vs MMF
Company size
Total annual profit
8. Straight advice for your situation
Since you’re using a corporate brokerage account:
Confirm your company classification:
Small / Medium / Large
Ask the fund manager:
Breakdown of income sources (T-bills vs others)
Track:
WHT deductions
Annual tax computation
Bottom line
Yes, CITA (up to 30%) is real
But:
It applies to net company profits, not directly to the fund
Some MMF income (like T-bills) can be tax-exempt
Others may flow into taxable profit

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The new Nigerian tax law (Nigeria Tax Act 2025) changed the thresholds quite significantly. Here’s the exact, current position—no guesswork.
1. For Individuals (Salary Earners, Civil Servants, etc.)
✅ Tax-free threshold:
If you earn ₦800,000 or less per year
→ You pay ZERO tax
That is roughly:
₦66,667 per month
👉 What happens above ₦800,000?
Only the amount above ₦800,000 is taxed
Tax is progressive (0% – 25%)
Example:
Salary = ₦1,200,000/year
First ₦800,000 = 0% tax
Remaining ₦400,000 = taxed at 15%
📌 Simple interpretation
Annual Income
Tax
≤ ₦800,000
No tax
Above ₦800,000
Start paying tax
⚠️ Extra note (important)
Even if you earn slightly above:
You may still pay very small tax, not heavy
2. For Companies (Businesses)
✅ Tax-free threshold (new rule):
If a company earns ₦100 million or less per year (turnover)
→ No Company Income Tax (CIT)
But there’s a condition:
Fixed assets must not exceed ₦250 million
👉 If above ₦100 million:
Company pays:
30% Corporate Income Tax
Other applicable taxes/levies
📌 Simple interpretation
Company Turnover
Tax
≤ ₦100 million
No company income tax
> ₦100 million
Tax applies
3. Big Picture (What Changed)
Before:
Tax started from very low income
Now:
Government shifted burden to:
Higher earners
Bigger companies
👉 Low-income individuals and small businesses are now mostly protected
4. Practical Meaning for You
As a civil servant:
If your salary is:
Around minimum wage → likely no tax
Mid-level → small tax
High income → progressively higher tax
Bottom Line
Individuals:
👉 Start paying tax only after ₦800,000/year
Companies:
👉 Start paying company tax only after ₦100 million turnover

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Yes — this is a very common issue with TaxPro Max after paying via Remita, especially for CIT / EDT payments.
You’re actually doing the right troubleshooting steps already. Here’s what’s happening and what to do.
Why This Happens (TaxProMax Sync Lag)
When you pay via Remita:
Payment goes to Remita
Remita confirms payment
Payment moves to Federal Inland Revenue Service backend
TaxProMax then pulls and settles assessment
Sometimes Step 3 → Step 4 delays, causing:
Credit ledger shows balance
Assessment still “Pending Payment”
This is a known TaxProMax sync issue, and users are often advised to report glitches for resolution, as the platform sometimes requires backend intervention.
How Long It Usually Takes
Typical sync delay:
30 minutes — 2 hours (normal)
24 hours (common)
48 hours (sometimes)
If beyond 48 hours, it’s usually not automatic anymore.
What You Should Try (In Order)
Step 1 — Try “Refresh Payment” (Hidden Trick)
Go to:
Taxes Due
Open the assessment
Click:
View Payment
Refresh
Requery Payment (if available)
Sometimes this forces settlement.
Step 2 — Check “Credit Ledger → Apply Credit”
Some accounts have:
“Apply Credit”
“Use Credit”
“Offset Debit”
Try:
Go to Credit Ledger
Select credit
Apply to assessment
(Not all users have this feature)
Step 3 — Use “Raise Ticket” (Most Effective)
Inside TaxProMax:
Go to Support
Click Raise Ticket
Attach:
Remita receipt
FIRS acknowledgment
Screenshot of pending debit
This is usually resolved same day.
Best Fastest Fix (What Tax Consultants Usually Do)
Send email to:
eservices@firs.gov.ng
OR
taxpromax@firs.gov.ng
Include:
TIN
Company name
RRR number
Screenshot
Tax type (CIT/EDT)
They manually push settlement.
My Professional Advice
Since:
You already see credit ledger balance
Acknowledgment receipt received
This is 100% a backend sync delay — not a payment problem.
Do this now:
Wait 2–6 hours
If still pending → Raise ticket
If urgent → Email FIRS

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This is an important question — and you’re not alone. Many business owners register a company and forget about Annual Returns.
Let me clarify properly because there are TWO different Annual Returns in Nigeria:
1. CAC Annual Returns (Company Status)
This is filed with the
Corporate Affairs Commission (CAC)
This is NOT tax — it’s just to confirm your company is still active.
Why It’s Important
If you don’t file CAC annual returns:
Your company becomes inactive
CAC may strike off your company
You may pay penalties
When to File
Every year after your company anniversary
Example:
Company registered March 2022
First annual return due March 2023
2. Tax Annual Returns (FIRS / State Tax)
This is filed with:
Federal Inland Revenue Service (FIRS) — for companies
State Internal Revenue Service — for PAYE (if you have employees)
This includes:
Company Income Tax (CIT)
Education Tax
VAT (if applicable)
Filed through:
TaxPro Max
Since You Haven’t Filed Since Registration — Here’s What To Do
Step 1 — Check Your Company Status
Go to CAC portal:
https://post.cac.gov.ng
Check:
Is your company still active?
How many years outstanding?
Step 2 — File CAC Annual Returns
You’ll need:
Company RC number
Director details
Company address
You can:
File yourself online
Use an agent (₦10k–₦25k typically depending on years owed)
Step 3 — File Tax Returns (Even If No Business Yet)
Very important:
Even if your company:
Didn’t operate
Made no profit
Was dormant
You must still file “Nil Returns”
This avoids penalties.
Estimated Penalties (Don’t Panic Yet)
Typical:
CAC Annual Return penalty: ₦5,000–₦10,000 per year
Tax penalty varies depending on company size
But many times:
Agents help reduce penalties
Or you can request waiver

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This is a very common issue when trying to register on the Lagos State Internal Revenue Service portal — and it usually happens for one of four reasons.

Let me walk you through what’s happening and how to fix it step-by-step 👇

Why This Happens

You’re seeing:

“You have registered before” ❗

“Tax ID cannot be found” ❗

This usually means:

Possible Cause 1: Your Employer Already Registered You

If you’re:

Salary earner

Government worker

Corporate employee

Your employer may have already created a Payer ID for you.

But:

You don’t know the email used

You don’t know the Payer ID

Your phone number may be different

So the system says you already exist, but you can’t access it.

How To Fix It (Best Solution)

Step 1 — Use “Forgot Payer ID” (Correct Way)

Go to:

👉 https://etax.lirs.net

Then:

Click Find Taxpayer ID

Enter:

Your surname

Phone number

Date of birth

Try different combinations if needed.

Step 2 — If Still Not Working

Use LIRS Support (Fastest Solution)

Contact:

**Lagos State Internal Revenue Service Helpdesk

You can:

Email them

📧 etax@lirs.net

Send:

Full name

Phone number

Email

Date of birth

Write:

“I tried creating a Payer ID but system says I already registered. When I try to find ID, it says not found. Please help retrieve my Payer ID.”

They usually respond within same day or next day.

Step 3 — Fastest Option (If Deadline is Close)

Walk into any LIRS office and tell them:

“I cannot access my Payer ID, but deadline is near.”

They will:

✅ Retrieve your Payer ID

✅ Reset your login

✅ Help you file immediately

This is the fastest solution.

Common Things To Try First

Before contacting them, try:

✔ Use another browser

✔ Try Chrome instead

✔ Turn off VPN

✔ Try different phone number

✔ Try surname only

Sometimes it’s just system glitch.

Important (Don’t Create Another Profile)

⚠️ Don’t try creating multiple accounts

⚠️ It will create duplicate records

⚠️ This may delay your filing

My Recommendation (Based on Your Situation)

Since deadline is close:

👉 Best option: Email LIRS immediately

👉 Second option: Visit LIRS office physically

You’ll resolve it within same day.

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