As a Nigerian, where you file your tax is determined by the category you belong:
1. Individuals & Business Names (State Tax)
This category includes:
- Individuals earning income
- Salary earners (PAYE)
- Freelancers and side income earners
- Sole proprietors
- Business Names (sole proprietorships registered with the Corporate Affairs Commission (CAC))
You pay: Personal Income Tax
You file with: State Internal Revenue Service
Examples:
- Lagos State Internal Revenue Service
- Rivers State Internal Revenue Service
It depends on where you live or earn income
2. Companies (Limited Liability Companies ONLY)
This applies only to registered companies such as:
- XYZ Ltd
- ABC Nigeria Ltd
These are separate legal entities from the owner.
You pay: Company Income Tax
You file with: Federal Inland Revenue Service (FIRS)
- Federal Inland Revenue Service
This is federal taxation — not based on location.
THE SIMPLE RULE
- Individuals → State Tax (Personal Income Tax)
- Business Name → State Tax (Personal Income Tax)
- Companies (Ltd) → Federal Tax (Company Income Tax via FIRS)
WHY THIS CONFUSES MOST PEOPLE
The confusion usually starts here:
Most people register their business with CAC and assume that automatically means company taxation.
But:
- CAC handles business registration only
- Tax authority depends on your business structure
Registration does not equal Tax classification.
If you are searching for information on:
- tax filing Nigeria
- FIRS vs state tax Nigeria
- personal income tax Nigeria
- company income tax Nigeria
- CAC business registration tax
This page answers all of them in one place.
Not sure about your structure? Read:
Business Name vs Company in Nigeria: When Do You Pay Company Income Tax?
If you’re unsure whether you’re overpaying or filing correctly:
5 Signs Your Business Needs Professional Tax Support (Stop Overpaying Taxes)
Payroll also affects tax compliance — see:
Payroll Structure in Nigeria: The Hidden Risk of Paying Salaries Without a System
