Corporate tax exemption nigeria new companies

In Nigeria, new companies are eligible for a corporate tax exemption under certain conditions. Here are the details:

Corporate Tax Exemption for New Companies in Nigeria

The Nigerian government offers a corporate tax exemption to new companies that meet specific criteria. This exemption is designed to encourage entrepreneurship, job creation, and economic growth.

Eligibility Criteria:

To be eligible for the corporate tax exemption, a new company must:

  1. Be a new company: The company must be incorporated in Nigeria and have not been in operation for more than 3 years.
  2. Be engaged in a qualifying business: The company must be engaged in a business that is considered a "qualifying business" by the Federal Inland Revenue Service (FIRS). Qualifying businesses include:
    • Manufacturing
    • Agriculture
    • Mining
    • Construction
    • Tourism
    • Information Technology
    • Creative Industry
  3. Have a minimum paid-up capital: The company must have a minimum paid-up capital of N10 million (approximately $27,000).
  4. Not be a subsidiary of another company: The company must not be a subsidiary of another company that is already exempt from corporate tax.

Tax Exemption Period:

The corporate tax exemption is granted for a period of 3 years from the date of incorporation of the company. During this period, the company is exempt from paying corporate tax on its profits.

How to Apply:

To apply for the corporate tax exemption, a new company must submit an application to the FIRS, accompanied by the following documents:

  1. Certificate of Incorporation: A copy of the company's certificate of incorporation from the Corporate Affairs Commission (CAC).
  2. Business Plan: A comprehensive business plan outlining the company's objectives, products or services, market analysis, financial projections, and management structure.
  3. Paid-up Capital Certificate: A certificate from the CAC confirming the company's minimum paid-up capital of N10 million.
  4. Other supporting documents: Additional documents may be required, such as a copy of the company's articles of association, memorandum of association, and proof of registration with relevant regulatory agencies.

Conclusion:

The corporate tax exemption for new companies in Nigeria is a valuable incentive for entrepreneurs and businesses looking to establish themselves in the country. By meeting the eligibility criteria and submitting the required documents, new companies can enjoy a 3-year tax exemption period, which can help them grow and expand their operations.