When should new businesses start filing taxes?

In 2026, the transition to the Nigeria Tax Act 2025 has changed the timeline for new businesses. Compliance is now more integrated, meaning your tax journey begins almost the moment you receive your CAC certificate.

Here is the timeline for when a new business should start filing:

1. Immediate Requirement: Tax Registration (TIN)

• When: Within 15 to 30 days of incorporation.
• The 2026 Process: If you registered your business in 2026, your RC Number (Company) or BN Number (Business Name) is automatically your Tax Identification Number (TIN).
• Action: You must log into the TaxPro Max portal to "activate" your profile. Even if you haven't started making money, you must notify the Nigeria Revenue Service (NRS) that the business exists.

2. Monthly Filings (VAT & WHT)

You don't wait until the end of the year to start these. If you carry out any taxable transaction in your first month:

• VAT (Value Added Tax): You must file and remit VAT by the 21st day of the following month.
• PAYE (Personal Income Tax for Employees): If you have staff, you must remit their tax to the State Internal Revenue Service (e.g., LIRS) by the 10th day of the following month.
• WHT (Withholding Tax): If you pay a vendor, you must deduct WHT and remit it by the 21st day of the following month.

3. Annual Company Income Tax (CIT)

This is where new businesses have a "grace period."

• The 18-Month Rule: A new company must file its first CIT return within 18 months of incorporation or 6 months after its first financial year-end, whichever comes first.
• Example: If you register on Feb 1, 2026, and your year ends Dec 31, 2026, your first filing deadline is June 30, 2027.

The "Small Business" Exemption (2026 Update)

Under the new laws effective Jan 1, 2026, the thresholds for "Small Businesses" have been raised to simplify life for startups:

• The Threshold: If your annual turnover is ₦100 million or less AND your fixed assets are under ₦250 million, you are exempt from paying Company Income Tax (0% rate).
• The "Paperwork" Catch: Even if you are exempt from paying, you are not exempt from filing. You must still file a "Nil Return" annually to prove you are below the threshold. If you don't file, the NRS can't verify you're a small business and may issue a "Best of Judgment" (BOJ) tax bill.

Summary Table: First Filing Milestones

Warning for 2026: Failure to activate your TIN or file your first monthly return on time now triggers a ₦100,000 fine in the first month and ₦50,000 for every month after.