A new company's first tax deadline is not simply "next year." Two different clocks run at once, and the earlier one wins.
The two clocks
Within 18 months of incorporation or six months after its first accounting period ends, whichever is earlier. Work both dates out for your own company, then use whichever falls first.
A company incorporated in January, with a December year end, will usually find the six-months-after-year-end date arrives before the 18-months-from-incorporation date. A company with an unusual first accounting period should check both carefully rather than assume.
Why 18 months is not automatically the answer
Treating 18 months from incorporation as a fixed deadline is a common assumption, and an incorrect one on its own. It is only one half of an "earlier of" test.
A company that waits for the 18-month mark, when its own accounting period would have triggered an earlier filing date, has already filed late by the time it gets there.
The lighter accounts option for a small company
A company that qualifies as small does not necessarily need a full audit for this first return. A statement of accounts attested to by the company instead of audited financial statements can be used instead.
This does not remove the filing duty itself. Every taxable person must file a return each year, even if no tax is due, small company or not, audited or not.
Can the 0% rate apply from day one
Yes. There is nothing in the small-company rate that requires a waiting period based on how new the company is. 0% applies to a first-year company that meets the turnover and fixed-assets tests, in the same way it applies to a company in its tenth year.
Our piece on the small-company exemption covers those tests, including the dispute over the exact turnover figure to use.
What to line up before the first return is due
Gather your incorporation date, your chosen accounting year end, and your accounts for the period, whether audited or in the simpler small-company format. Work out both possible deadlines early, rather than close to whichever one turns out to apply.
Common mistakes
- Assuming 18 months from incorporation is always the deadline. It is only used when it falls before the accounting-period test.
- Producing a full audit when the simpler accounts rule would have done. Confirm your small-company status before committing to the more expensive option.
- Skipping the first return because the company made little or no money. The filing duty applies regardless of the result for the year.
Once this first return is filed and current, a tax clearance certificate from the Nigeria Revenue Service (NRS), formerly FIRS, becomes something you can request. Start a request once a tender or bank asks for one. For the ongoing deadline in later years, read the CIT filing deadline and self-assessment, and browse the NRS and Rev360 hub for more.