A company’s income tax return shows the company’s income tax (CIT) payable. Resident companies pay CIT on worldwide income, non-residents on Nigerian income. Companies in upstream operations also pay hydrocarbon tax.
CIT Rates by Country
Nigeria
The CIT rate in Nigeria depends on a company’s turnover, with:
- 0% for small companies below NGN25 million turnover
- 20% for medium companies from NGN25 million to NGN100 million turnover
- 30% for large companies above NGN100 million turnover
Vietnam
CIT procedures in Vietnam require meticulous preparation of documents for foreign enterprises unfamiliar with regulations. Outsourcing CIT return filing services saves time and ensures accuracy.
Poland
CIT taxpayers include limited liability and joint-stock companies, limited partnerships, and foundations with registered offices in Poland. The standard CIT rate is 19%. A lower 9% rate applies to small taxpayers starting in 2019. Polish tax residents pay tax on worldwide income.
China
The standard CIT rate in China is 25%. Some locations offer incentives to certain industries or foreign-invested businesses. The tax year runs from January 1 to December 31. Monthly or quarterly advance CIT payments are made, with adjustment at year-end. Quarterly and annual returns are required.
UAE
Nonresidents can reduce UAE CIT liability through available exemptions. Keep accurate income/expense records to calculate CIT accurately and claim reliefs. Register with the FTA and file on time to avoid penalties. Consider different PE types and nexus rules which may create a filing obligation. Consult a tax advisor with questions.
CIT in Accounting and Finance
Companies pay corporate income tax (CIT) on income. In finance, CIT Investment pools multiple investors to invest in securities, reducing overall tax liability since income is not taxed at the trust level. By exposing investors to varied assets, CIT Investment mitigates risk.