FIRS (Federal Inland Revenue Service)
FIRS is Nigeria's federal tax authority, responsible for company income tax, VAT, withholding tax and petroleum profits tax. Personal income tax for individuals is collected by State Internal Revenue Services instead, not by FIRS.
Federal or state: which one do you deal with?
| Tax | Authority |
|---|---|
| Company Income Tax (CIT) | FIRS |
| VAT | FIRS |
| Withholding tax on company payments | FIRS |
| Personal Income Tax / PAYE | State Internal Revenue Service |
Most small businesses deal with both: FIRS for the company's own taxes, and the state authority for their employees' PAYE.
Which state?
PAYE goes to the state where the employee resides, not where the company is registered. Employers with staff across several states remit to several authorities.
The FIRS remit is being carried forward under the reorganised revenue service established by the 2025 tax reforms; the practical split between federal and state taxes above is unchanged.
More Nigerian tax terms
- Company Income Tax (CIT)
- Consolidated Relief Allowance (CRA)
- Development Levy
- Direct assessment
- Input VAT
- Minimum wage tax exemption
- Output VAT
- PAYE (Pay-As-You-Earn)
- Personal Income Tax (PIT)
- Rent relief
- Tax Clearance Certificate (TCC)
- Tax Identification Number (TIN)
- Value Added Tax (VAT)
- Withholding Tax (WHT)
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