You’re asking a subtle but important distinction under the Nigeria Tax Administration Act (NTAA). Let’s break it down carefully. 1️⃣ Personal Income Tax (PIT) Governed primarily by state governments through State Internal Revenue Services (SIRS). Applies to: Individuals earning salaries/wages in NigRead more
You’re asking a subtle but important distinction under the Nigeria Tax Administration Act (NTAA). Let’s break it down carefully.
1️⃣ Personal Income Tax (PIT)
Governed primarily by state governments through State Internal Revenue Services (SIRS).
Applies to:
Individuals earning salaries/wages in Nigeria
Sole proprietors (registered as enterprises)
Collected under PAYE (Pay-As-You-Earn) for employees.
✅ This is why, for PIT, the state collects directly, even though FIRS provides overarching regulations.
2️⃣ Company Income Tax (CIT)
CIT is different from PIT.
Applies to companies registered as separate legal entities with the Corporate Affairs Commission (CAC).
Governing law: Companies Income Tax Act (CITA).
Collector:
Federal Inland Revenue Service (FIRS) exclusively collects CIT.
CIT applies to:
Limited liability companies (Ltd)
PLCs
Any company incorporated under CAC laws
💡 Key point: State SIRS do not collect CIT, even if the company operates in their state. They may still handle state-level taxes like Withholding Tax (WHT) at source or levies, but CIT is federal.
3️⃣ Difference in scope
Tax Type
Collected By
Applies To
PIT
State SIRS
Individuals & Sole Proprietors
CIT
FIRS
Registered Companies (Ltd, Plc, etc.)
VAT
FIRS & sometimes SIRS
Goods & Services
WHT
Both (depending on type)
Individuals, companies
✅ Bottom line
If your business is a registered company (Ltd/PLC) → FIRS collects your Company Income Tax.
If your business is a sole proprietorship or individual → state collects PIT.
If you want, I can also explain why some companies end up paying both FIRS and SIRS taxes and how to avoid double taxation legally — it’s a common trap in Nigeria.
In Nigeria, Personal Income Tax (PIT) is NOT collected by the Federal Inland Revenue Service. It is primarily collected by the State Internal Revenue Service. Here is the correct breakdown according to Nigerian tax laws: Who Collects Personal Income Tax in Nigeria? 1. State Internal Revenue ServiceRead more
In Nigeria, Personal Income Tax (PIT) is NOT collected by the Federal Inland Revenue Service.
It is primarily collected by the State Internal Revenue Service.
Here is the correct breakdown according to Nigerian tax laws:
Who Collects Personal Income Tax in Nigeria?
1. State Internal Revenue Service (SIRS) — Main Authority
Under the Personal Income Tax Act (PITA):
State Internal Revenue Service is responsible for collecting Personal Income Tax from:
Employees (PAYE)
Self-employed individuals
Business owners
Professionals
Traders
For example:
Plateau State → Plateau State Internal Revenue Service
Lagos State → Lagos State Internal Revenue Service
Rivers State → Rivers State Internal Revenue Service
This means you pay your personal income tax to the state where you reside/work.
2. Federal Inland Revenue Service (FIRS) — Special Cases Only
The Federal Inland Revenue Service (FIRS) collects Personal Income Tax only for specific categories, such as:
Members of Armed Forces
Police Officers
Foreign Affairs Officers
Residents of Abuja (FCT)
This is clearly stated under Section 2 of PITA.
Summary (Simple Table)
Tax Type
Who Collects
Personal Income Tax (Workers & Businesses)
State Internal Revenue Service
Armed Forces / Police / Foreign Affairs
FIRS
Residents in Abuja (FCT)
FIRS
Important Note
Many people confuse Nigeria Tax Administration Act with Personal Income Tax Act (PITA) —
But PITA is the main law governing Personal Income Tax in Nigeria.
Under Nigeria Tax Administration Act, Who Collects Company Income Tax From Registered Limited Liability Companies in Nigeria?
You’re asking a subtle but important distinction under the Nigeria Tax Administration Act (NTAA). Let’s break it down carefully. 1️⃣ Personal Income Tax (PIT) Governed primarily by state governments through State Internal Revenue Services (SIRS). Applies to: Individuals earning salaries/wages in NigRead more
You’re asking a subtle but important distinction under the Nigeria Tax Administration Act (NTAA). Let’s break it down carefully.
1️⃣ Personal Income Tax (PIT)
Governed primarily by state governments through State Internal Revenue Services (SIRS).
Applies to:
Individuals earning salaries/wages in Nigeria
Sole proprietors (registered as enterprises)
Collected under PAYE (Pay-As-You-Earn) for employees.
✅ This is why, for PIT, the state collects directly, even though FIRS provides overarching regulations.
2️⃣ Company Income Tax (CIT)
CIT is different from PIT.
Applies to companies registered as separate legal entities with the Corporate Affairs Commission (CAC).
Governing law: Companies Income Tax Act (CITA).
Collector:
Federal Inland Revenue Service (FIRS) exclusively collects CIT.
CIT applies to:
Limited liability companies (Ltd)
PLCs
Any company incorporated under CAC laws
💡 Key point: State SIRS do not collect CIT, even if the company operates in their state. They may still handle state-level taxes like Withholding Tax (WHT) at source or levies, but CIT is federal.
3️⃣ Difference in scope
Tax Type
Collected By
Applies To
PIT
State SIRS
Individuals & Sole Proprietors
CIT
FIRS
Registered Companies (Ltd, Plc, etc.)
VAT
FIRS & sometimes SIRS
Goods & Services
WHT
Both (depending on type)
Individuals, companies
✅ Bottom line
If your business is a registered company (Ltd/PLC) → FIRS collects your Company Income Tax.
If your business is a sole proprietorship or individual → state collects PIT.
If you want, I can also explain why some companies end up paying both FIRS and SIRS taxes and how to avoid double taxation legally — it’s a common trap in Nigeria.
See lessUnder the Nigeria Tax Administration Act, Who Collects Personal Income Tax: FIRS or State Internal Revenue Service?
In Nigeria, Personal Income Tax (PIT) is NOT collected by the Federal Inland Revenue Service. It is primarily collected by the State Internal Revenue Service. Here is the correct breakdown according to Nigerian tax laws: Who Collects Personal Income Tax in Nigeria? 1. State Internal Revenue ServiceRead more
In Nigeria, Personal Income Tax (PIT) is NOT collected by the Federal Inland Revenue Service.
It is primarily collected by the State Internal Revenue Service.
Here is the correct breakdown according to Nigerian tax laws:
Who Collects Personal Income Tax in Nigeria?
1. State Internal Revenue Service (SIRS) — Main Authority
Under the Personal Income Tax Act (PITA):
State Internal Revenue Service is responsible for collecting Personal Income Tax from:
Employees (PAYE)
Self-employed individuals
Business owners
Professionals
Traders
For example:
Plateau State → Plateau State Internal Revenue Service
Lagos State → Lagos State Internal Revenue Service
Rivers State → Rivers State Internal Revenue Service
This means you pay your personal income tax to the state where you reside/work.
2. Federal Inland Revenue Service (FIRS) — Special Cases Only
The Federal Inland Revenue Service (FIRS) collects Personal Income Tax only for specific categories, such as:
Members of Armed Forces
Police Officers
Foreign Affairs Officers
Residents of Abuja (FCT)
This is clearly stated under Section 2 of PITA.
Summary (Simple Table)
Tax Type
Who Collects
Personal Income Tax (Workers & Businesses)
State Internal Revenue Service
Armed Forces / Police / Foreign Affairs
FIRS
Residents in Abuja (FCT)
FIRS
Important Note
Many people confuse Nigeria Tax Administration Act with Personal Income Tax Act (PITA) —
But PITA is the main law governing Personal Income Tax in Nigeria.
See less