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 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.