Annual Returns Filing vs. Tax Filing in Nigeria: What’s the Difference?

Running a business in Nigeria comes with certain compliance responsibilities. Two important ones are Annual Returns Filing and Tax Filing.

Although they are often confused, they are not the same thing.

What Are Annual Returns?

Annual Returns are filings made with the Corporate Affairs Commission (CAC) to keep a registered business or company’s information and compliance status up to date.

They provide CAC with important information about the business, such as its registered details and other required corporate information.

In simple terms: Annual Returns show CAC that your business is still active and maintaining its statutory records.

What Is Tax Filing?

Tax Filing involves submitting the required tax information and returns to the relevant tax authority.

Depending on the nature of the business, this may include obligations relating to Company Income Tax, VAT, Withholding Tax, PAYE and other applicable taxes.

In simple terms: Tax Filing helps the tax authority determine and administer your business’s tax obligations.

Key Difference Between Annual Returns and Tax Filing

Annual Returns    Tax Filing
Filed with CAC    Filed with the relevant tax authority
Focuses on business/corporate records    Focuses on tax obligations
Keeps CAC records updated    Reports taxable income/transactions and tax information
Does not replace tax filing    Does not replace CAC Annual Returns

Do You Need Both?

In many cases, yes.

Filing your Annual Returns does not mean you have completed your tax obligations. Likewise, filing your tax returns does not replace your CAC An