AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A Nigerian company's income tax return is due no more than six months after its accounting year end, so the year end you choose fixes your filing calendar: a 31 December year end means a return by 30 June, a 31 March year end means 30 September. PwC's summary says returns are due six months after year end or, for a new company, 18 months after incorporation. December is the most common choice, but a date after your busy season can give cleaner stock counts and less pressure on your accountant.
What the year end controls
Your accounting year end is the date your financial year closes and your accounts are drawn up. For a company it sets the tax calendar. Section 11(5)(a) of the Nigeria Tax Administration Act 2025 requires a company that has been in business for more than 18 months to file its return not more than six months after the end of its accounting year. PwC's tax summary (reviewed May 2026) gives the deadline as six months after the year end or 18 months after incorporation for new companies, and says late filing costs ₦100,000 in the first month and ₦50,000 for each further month. Every company files a return each year, whether or not it owes tax (section 11(1)).
Individuals, including owners of business names, are different: PwC notes the individual tax year runs from 1 January to 31 December, with returns due within 90 days of its end. See tax for a business name owner.
Year end and filing deadline, month by month
| Accounting year end | Company tax return due (six months) | Notes |
|---|---|---|
| 31 December | 30 June | Lines up with the calendar year and the January employer returns |
| 31 March | 30 September | Avoids year-end work clashing with the festive season |
| 30 June | 31 December | Return falls due in the festive season |
| 30 September | 31 March | Filing coincides with individual returns season |
The case for 31 December
- Your financial year matches the calendar year used for PAYE, so the employer's annual return of emoluments, due by 31 January under section 14 of the 2025 Act, covers the same twelve months as your accounts.
- Banks, investors and tender forms often ask for calendar-year figures, so you avoid explaining a split year.
- A foreign parent or investor on a December year end can consolidate without adjustments.
- Comparisons with published sector data and inflation figures, often reported by calendar year, are easier.
The case for another date
- Seasonality. A retailer whose busiest weeks are in December has its largest stock and receivables on 31 December. Closing in March, after the rush, makes the stock count smaller and the numbers less distorted.
- Workload. Because many companies use December, the months after it are when their accountants and auditors are busiest. A different date can get you more attention and a better price.
- Your own cash cycle. If tax payments follow the return, a date that puts payment after your strongest cash months is easier on the business.
- Sector practice. Schools, for example, may prefer a year end that matches the academic year.
CAC filings follow a different clock
Company law has its own calendar. PwC's guide to CAMA 2020 compliance says a company's annual return to the CAC, with its accounts, is due within 42 days after its annual general meeting. The accounting year end drives when the accounts are ready and therefore when the AGM can sensibly be held. Small companies may be exempt from audit; see does a small company need audited accounts?
Worked example: a first return
A company is incorporated on 1 March 2026 and chooses a 31 December year end. Its first accounting period ends on 31 December 2026, only ten months after incorporation. The six-month rule in section 11(5)(a) applies to companies in business for more than 18 months, so for this first return the new-company limit PwC describes, 18 months after incorporation, points to around 1 September 2027. From its second year, the return for the year to 31 December 2027 is due by 30 June 2028. A new company should confirm its first due date with the NRS in writing rather than assume, because a long or short first period changes the arithmetic.
Changing your year end later
You can change your year end, but it creates a short or long accounting period and affects how profits are assessed for the transition years. Take advice before changing it, tell the NRS, and make sure your board resolution and CAC filings reflect the new date. A small company that pays 0 per cent tax still files, so the change has paperwork costs even where no tax is due. If you are incorporating now, decide the year end before your first board meeting and write it into the minutes, so your accountant, bank and auditors all work to the same date from day one.
Where Pryme fits
Whatever date you choose, the Compliance agent on a Pryme Business Account can keep the return, CAC and PAYE deadlines on one calendar, and the Finance agent can prepare year-end reconciliations for your accountant, with a person approving each step. The deadlines calendar guide shows how.
Questions people ask
When is company income tax return due in Nigeria?
Within six months after the company's accounting year end, under section 11(5)(a) of the Nigeria Tax Administration Act 2025, for companies in business more than 18 months. PwC says new companies file within 18 months of incorporation; confirm your first date with the NRS.
Can a Nigerian company choose a year end other than December?
Yes. Companies file on their own accounting year. Choose a date that suits your trading cycle, and take advice before changing it later.
What is the penalty for late company tax filing in Nigeria?
PwC and section 101 of the 2025 Act put it at ₦100,000 for the first month and ₦50,000 for each month after.
Is the year end the same for my business name?
No. Business name profits are personal income, taxed on the calendar year, with returns due within 90 days of 31 December.
Sources
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria corporate tax administration · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria individual tax administration · accessed Oct 2026
- Key compliance obligations under CAMA 2020 and CR 2021 (PwC Nigeria) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.