As an individual that has a “limited liability company”, do you file both your personal income tax and your company’s income tax, separately?
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As an individual that has a “limited liability company”, do you file both your personal income tax and your company’s income tax, separately?
Of course, you must file them separately. Legally, a Limited Liability Company is a "person" distinct from you, its owner. Therefore, you both have separate tax obligations. The Dual-Filing System Feature, Personal Income Tax (PIT), Company Income Tax (CIT) Who it's for,Read more
Of course, you must file them separately. Legally, a Limited Liability Company is a “person” distinct from you, its owner. Therefore, you both have separate tax obligations.
The Dual-Filing System
Feature, Personal Income Tax (PIT), Company Income Tax (CIT)
Who it’s for, You (the individual/Director), Your Company (the business entity)
Tax Authority, “State IRS (e.g., LIRS for Lagos)”, FIRS (Federal level)
Income Source, Your salary, allowances, or dividends, Business profits and revenue
Governing Law, Personal Income Tax Act (PITA), Companies Income Tax Act (CITA)
Key Rules to Remember
Why this distinction matters
The “Golden Rule”
Even if you are the only person in the company, you must still wear two hats:
The Bottom Line
Because a Limited Liability Company is a separate legal entity, “mixing” these taxes is a major compliance error. You must file Personal Income Tax where you live and Company Income Tax at the federal level.
Goodluck!
See lessYes — 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