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 new company's first company income tax return is due within 18 months of incorporation; after that, returns are due within six months of each accounting year end (PwC, May 2026; section 11(5)(a) of the Nigeria Tax Administration Act 2025). Every company must file even if it made no profit, and late filing costs ₦100,000 for the first month plus ₦50,000 for each further month under section 101.
New founders are often told "you have 18 months" and then lose track of it. The rule is simple once you know which clock you are on, and the penalties are fixed in law, so a missed date is expensive and avoidable.
The two clocks
Nigeria runs company income tax on self-assessment. Two deadlines apply, depending on how long the company has existed:
| Company | Return due | Source |
|---|---|---|
| In its first 18 months | Within 18 months of the date of incorporation | PwC Worldwide Tax Summaries, reviewed 29 May 2026 |
| In business for more than 18 months | Not more than six months after the end of its accounting year | NTAA 2025 s.11(5)(a); PwC |
The 18-month window exists because a new company may choose an accounting year end that leaves a first period longer or shorter than twelve months, and it needs time to prepare its first accounts. Once that first return is in, the company moves to the six-month clock for every later year.
Worked example: counting the dates
Example only. Adaeze incorporates Ada Foods Ltd on 1 March 2026 and picks 31 December as its year end.
- First accounting period: 1 March 2026 to 31 December 2026.
- Eighteen months from incorporation runs to 31 August 2027. That is the outside date for the first return on the 18-month rule.
- The six-month date for the year to 31 December 2026 would be 30 June 2027. Because guidance describes both dates, the safer plan is to file by 30 June 2027 unless the NRS confirms the later date applies to you.
- From the year to 31 December 2027 onwards, the return is due by 30 June of the following year.
Filing early costs nothing. Filing late costs a fixed penalty plus interest on any unpaid tax.
What you file, even with no profit
Section 11(1) of the Nigeria Tax Administration Act 2025 requires every company to file a self-assessment return each year "whether or not" it is liable to tax. A company that made a loss, or a small company taxed at 0% under section 56(a) of the Nigeria Tax Act 2025, still files.
- Financial statements. PwC lists audited financial statements as part of the annual filing. A small company may instead submit a statement of accounts attested by the taxpayer, under the Administration Act.
- Tax computation. Accounting profit adjusted to taxable profit, with capital allowances in place of depreciation.
- Self-assessment form on the NRS portal (Rev360 is replacing TaxPro Max).
- Evidence of any tax paid, including withholding tax credit notes received from customers.
If you were not already registered, a Tax ID is needed first. Section 4 of the Administration Act requires every taxable person to register, and a company's Tax ID is generated from its CAC record. See how to get a Tax ID for your business.
Penalties for missing the date
| Failure | Penalty | Section (NTAA 2025) |
|---|---|---|
| Not filing a return on time | ₦100,000 for the first month, ₦50,000 for each further month | s.101 |
| Not paying tax due on time | 10% of the unpaid tax plus interest | s.65 |
| Not keeping books and records | ₦50,000 for a company | s.102 |
Example only: if Ada Foods files its first return three months late, the late-filing penalty is ₦100,000 + ₦50,000 + ₦50,000 = ₦200,000, even if the company owes no tax at all. Section 66 lets the tax authority remit penalties and interest for good cause, but that is discretionary, so do not plan around it.
Steps to stay on time
- Decide the accounting year end at incorporation and write both dates (18 months and six months after the first year end) in the company calendar.
- Keep books from day one; section 31 requires records for at least six years.
- Engage an accountant at least three months before the earlier date if accounts need auditing.
- File on the NRS portal and keep the acknowledgement.
- Remember the separate CAC annual return; it is a different filing with its own dates. See CAC annual returns.
If you have already missed it
Penalties under section 101 grow each month, so the cheapest course is to file as soon as the accounts are ready rather than wait for a perfect set. A return filed late with a clear computation stops the monthly penalty from running; a return not filed at all keeps adding ₦50,000 a month. If tax is also unpaid, the 10% and interest under section 65 continue until it is paid.
Keep a written note of why the return was late, such as a delayed audit or a bank that would not release statements. If you later ask the NRS to remit the penalty under section 66, that record is what you will rely on. Do not assume a dormant first year excuses the return: section 11(1) applies to every company, and our guide to dormant company filing covers that case.
Where Pryme fits
The Compliance agent on a Pryme Business Account can hold your filing dates and prepare reminders, and the Finance agent keeps transaction records tidy for the accountant. A person approves anything above a set ceiling, and actions are recorded.
Questions people ask
How long does a new company have to file tax in Nigeria?
Within 18 months of incorporation for the first return, according to PwC's May 2026 summary. After that, within six months of each accounting year end.
Does a new company with no income file a tax return?
Yes. Section 11(1) of the Nigeria Tax Administration Act 2025 requires every company to file each year whether or not it owes tax.
What is the penalty for late company tax filing?
₦100,000 for the first month and ₦50,000 for each further month under section 101 of the Administration Act, plus 10% and interest on any unpaid tax.
Is the first tax return the same as CAC annual returns?
No. The tax return goes to the NRS; the annual return goes to the Corporate Affairs Commission. Both are required.
Sources
- PwC Worldwide Tax Summaries: Nigeria, corporate tax administration (reviewed 29 May 2026) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- Nigeria Tax Act 2025 (assented 26 Jun 2025), sections 8, 20, 21, 55, 56 and 59 · accessed Oct 2026
- Premium Times via AllAfrica: Explainer on Tax ID registration under the NTAA 2025 (12 Nov 2025) · 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.