The Federal Inland Revenue Service (FIRS) has reaffirmed that small companies in Nigeria are legally required to file their annual tax returns, even though they are exempt from paying Companies Income Tax (CIT).

Under the Finance Act, businesses with an annual turnover of less than ₦25 million fall into the “small company” category and are charged 0% CIT. However, FIRS emphasized that this exemption applies only to tax payment, not to the obligation to file returns.

The agency explained that filing returns enables it to verify a company’s eligibility for the tax exemption, maintain accurate national records, and ensure proper tax administration. It also warned that failure to file returns regardless of tax liability could attract penalties for non-compliance.

Small companies are therefore expected to submit their annual tax returns, financial statements, and other required documentation within statutory timelines.

FIRS stressed that compliance with filing requirements remains mandatory for all registered companies, noting that zero tax does not equate to zero obligation. Visit www.jocomms.com for more news.