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Do I Pay Both Personal Income Tax and Company Income Tax in Nigeria If I Own a Limited Liability Company?
Yes — you must file both separately if you own a Limited Liability Company. This is because you and your company are legally two different entities. Why You Must File Both Under Nigerian tax laws: You (Individual) → Pay Personal Income Tax (PIT) Your Company (Limited Liability) → Pay Company IncomeRead more
Yes — you must file both separately if you own a Limited Liability Company.
This is because you and your company are legally two different entities.
Why You Must File Both
Under Nigerian tax laws:
You (Individual) → Pay Personal Income Tax (PIT)
Your Company (Limited Liability) → Pay Company Income Tax (CIT)
These are governed by different laws:
Personal Income Tax Act → For individuals
Companies Income Tax Act → For companies
1. Your Personal Income Tax (PIT)
You file Personal Income Tax if you receive:
Salary from your company
Director’s allowance
Dividends (in some cases)
Any personal income
You file this with:
Your State Internal Revenue Service
Example:
If you live in Lagos → File with Lagos State Internal Revenue Service
If you live in Rivers → File with Rivers State IRS
2. Your Company Income Tax (CIT)
Your Limited Liability Company must file:
Company Income Tax (CIT)
Annual returns
VAT (if applicable)
Withholding Tax (if applicable)
These are filed with: 👉 Federal Inland Revenue Service (FIRS)
Simple Example
Let’s say:
Your Company earns → ₦10,000,000
You pay yourself salary → ₦1,200,000
You must:
Company pays tax on ₦10,000,000 → Company Income Tax
You pay tax on ₦1,200,000 → Personal Income Tax
Important (Many People Miss This)
Even if:
Your company did not make profit
You still must file:
Company returns (zero return)
Otherwise:
You may face penalties
Summary
Type
Who Files
Where To File
Personal Income Tax
You
State IRS
Company Income Tax
Your Company
FIRS
See less