January 26, 2022

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Tax Due dates for Business in Nigeria 2022

Tax Due dates for Business in Nigeria 2022
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Tax Due dates are the dates businesses and individuals are expected to pay taxes. Failing to make payment on those days may need fines and penalties. It is paramount for businesses whether small or big to take note of these due dates.

To know the tax due dates for your business, you need to know if your business was registered as a company or business name in Nigeria. This will let you know what taxes to pay and their due dates. In this article, I will explain these dates based on if the business is a company or a business name. Note that companies are those registered as limited liability companies. But business names are for partnership, sole proprietorship, and nonprofit organizations that are not registered as companies.

Tax due date for business names

Individuals that registered a business name are expected to pay personal income tax, pay as you earn, withholding tax, and value-added tax (if they hit 20 million Naira sales per year). The due dates for these taxes are stated below:

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Personal Income Tax (PIT): March 31st, 2022

Pay as you earn (PAYE): 31st of January 2022 for the annual returns and 10th of every month for the monthly PAYE returns. This is how the monthly returns work. January PAYE will be paid on the 10th of February. February PAYE is paid on the 10th of March, March PAYE paid on 10th April, and so on.

Withholding/Value added tax: 21st of every month. The process is similar to PAYE. That’s January withholding/value-added tax is paid 21st February, etc.

Tax Due Dates for Companies

Companies registered as limited liability company LLC or Public Limited Liability Company PLC are expected to file returns on the following tax. Company income tax, Education tax, National Information and Technology Development Levy (NITDL). Also, they pay Value-added and withholding tax. The tax due dates for the above is stated below:

Company Income Tax (CIT): Six months after the end of the company’s accounting year. If the accounting year ended 31st December 2021. The due date shall be 31st June 2022. If the accounting year is May 2022, then the due date becomes 30th November 2022, and so on.

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For new companies, that is, companies that just commenced operation also called startups. The tax due date is 18th months or 6 months after the first accounting year.

Education tax: The application is the same as CIT.

National Information and Technology Development Levy (NITDL): As applicable to CIT.

Withholding/Value added tax: 21st of every month. That’s January withholding or value-added tax is paid 21st February, etc. This is similar to business names as stated above.

Conclusion

In summary, tax due dates for businesses in Nigeria have been started above. However, you must know if your business is registered as a business name or company to determine what applies to you.

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