Company Income Tax (CIT) is the tax on your company's profits, administered by the NRS. Unlike VAT and PAYE, which you collect on behalf of others, CIT is your company's own liability — which makes planning for it worthwhile.
How the rate is set
CIT is charged on taxable profit, and the rate that applies depends on your company's turnover band. Smaller companies fall into lower bands, which is one reason accurate turnover records matter beyond just bookkeeping. Your taxable profit is not the same as your accounting profit — it is your profit adjusted for tax purposes.
Allowable and disallowable expenses
An expense reduces your taxable profit only if it is wholly, reasonably, exclusively, and necessarily incurred in earning your income. Some costs in your accounts are added back for tax; some reliefs and capital allowances are deducted. Getting these adjustments right is where a tax practice earns its fee.
Taxable profit is accounting profit adjusted for tax: disallowed expenses added back, capital allowances and reliefs taken off.
The deadline
A company's CIT return is due within six months of the end of its accounting year. Filing on time — and paying on time — avoids penalties and interest, and it keeps your tax clearance current, which you will need for contracts, tenders, and banking.
- Keep clean records of every expense and its business purpose.
- Track capital expenditure separately — it is relieved through capital allowances, not expensed.
- Plan before year-end, not after — most tax planning options close once the year does.
- File within six months of your year-end to stay penalty-free.
We handle CIT computation, filing, and planning for clients, and we represent you with the NRS if a query or audit arises — so your tax position is both correct and defensible.