COMPANIES INCOME TAX (AMENDMENT) ACT, 2007

An Act that amends the Companies Income Tax law by updating rates, exemptions, and administration in Nigeria. It targets all operating companies and tax authorities. This improves revenue collection and aligns with economic policies.

What Is This Policy?

An amendment Act that updated Nigeria's Companies Income Tax Act, introducing changes to rates, exemptions, and administrative provisions to improve tax administration and reflect economic policy priorities of 2007.

Who Does It Target?

All companies operating in Nigeria Federal Inland Revenue Service (FIRS) Tax practitioners and advisers Foreign companies with Nigerian operations

What Does It Aim to Achieve?

Update corporate income tax provisions to improve revenue collection, reduce distortions, align with investment incentive policy, and strengthen FIRS administration.

Key Features

Rate Adjustments: Modified CIT rates for specific categories of companies and income streams. Exemption Updates: Updated exemptions for qualifying entities including government bodies and approved organisations. Small Company Provisions: Introduced concessions for smaller companies to reduce compliance burden. Administrative Improvements: Strengthened FIRS assessment, collection, and enforcement provisions.

Current Status

Rollout Stage: Active — provisions carried forward through subsequent Finance Acts Coverage: Nationwide, all companies Beneficiaries: Nigerian treasury; qualifying exempt entities Funding: Revenue measure

How to Access

All companies must comply with current CITA as amended File annual returns with FIRS Refer to consolidated CITA for current provisions Application method: Register and file with FIRS at https://www.firs.gov.ng

Important Terms

The 2007 amendment has been further updated by Finance Acts 2019, 2020, and 2021 Always refer to the most recent consolidated version of CITA FIRS binding rulings available for complex tax positions

Official Resources

Website: https://www.firs.gov.ng Contact: Federal Inland Revenue Service (FIRS)

Legal Framework

The Companies Income Tax (Amendment) Act 2007 operated under the Companies Income Tax Act (CITA) and the Federal Inland Revenue Service (Establishment) Act 2007. Constitutional authority derives from the Second Schedule of the 1999 Constitution on federal taxation powers. The amendment aligned with IMF and World Bank tax reform recommendations for Nigeria and international best practices on corporate tax administration under the OECD Model Tax Convention.