CACAnnualReturns.com is operated by Adebayo Oluwole & Associates, a professional practice led by a Chartered Accountant and CAC-accredited agent. We assist businesses, companies and incorporated trustees with annual returns and other CAC compliance filings.
This is our professional service website, rather than the official CAC website.
Many business owners in Nigeria assume that once they file their CAC Annual Returns, they have fulfilled all compliance requirements. This is one of the most common misconceptions among small businesses and even some registered companies.
The simple answer is No. Filing CAC Annual Returns does not automatically mean that your business is tax compliant.
CAC compliance and tax compliance are separate obligations governed by different laws and administered by different government agencies.
Do you have employees?
Tax compliance goes beyond Annual Returns. Employers are also expected to calculate and remit PAYE correctly. Accurenza is complete accounting software with a payroll module for calculating employee PAYE, deductions and net salary.
What Is CAC Annual Returns Filing?
Annual Returns is a statutory filing made to the Corporate Affairs Commission (CAC) to confirm that a registered business or company is still in operation.
The filing helps CAC maintain updated records about registered entities in Nigeria.
Information commonly disclosed during Annual Returns filing may include:
- Company name and registration number
- Registered office address
- Details of directors
- Shareholding structure
- Nature of business activities
- Other statutory information required by CAC
Failure to file Annual Returns may attract penalties and can eventually expose the company to the risk of being struck off the CAC register.
What Is Tax Compliance?
Tax compliance refers to fulfilling the tax obligations imposed on a business by Nigerian tax laws.
Depending on the nature and size of the business, tax compliance may include:
- Company Income Tax (CIT)
- PAYE Returns
- Value Added Tax (VAT)
- Withholding Tax (WHT)
- Capital Gains Tax
- Stamp Duties
- Other applicable taxes
From 1 January 2026, federal tax administration is handled by the Nigeria Revenue Service (NRS), which replaced FIRS. State Internal Revenue Services administer taxes within their respective responsibilities.
Why CAC Annual Returns Is Different From Tax Compliance
CAC and tax authorities perform different functions.
The Corporate Affairs Commission regulates the registration and statutory records of companies and business names.
Tax authorities focus on assessing, collecting and enforcing tax obligations.
As a result:
- A company may file Annual Returns and still owe taxes.
- A company may be tax compliant but fail to file Annual Returns.
- Compliance with one agency does not automatically mean compliance with the other.
Example of CAC Compliance Without Tax Compliance
A company files its Annual Returns with CAC for the current year and pays all applicable CAC penalties.
However, the company fails to:
- File Company Income Tax Returns
- Remit PAYE deductions
- File VAT Returns
In this situation, the company is CAC compliant but not tax compliant.
Example of Tax Compliance Without CAC Compliance
A company files its tax returns regularly, remits PAYE, pays Company Income Tax and obtains a Tax Clearance Certificate.
However, it has not filed Annual Returns with CAC for several years.
In this case, the company is tax compliant but CAC non-compliant.
Does a Dormant Company Need Both?
Many business owners believe that dormant companies have no compliance obligations.
This is not always correct.
A dormant company may still be required to:
- File CAC Annual Returns
- Meet certain tax filing obligations
- Submit nil returns where applicable
The exact requirement depends on the company’s circumstances and regulatory status.
Why Tax Compliance Matters for Businesses
Proper tax compliance can help a business:
- Obtain Tax Clearance Certificates
- Qualify for government contracts
- Access business loans
- Avoid penalties and interest
- Improve credibility with investors and regulators
PAYE Compliance Is Commonly Overlooked
One area where many businesses struggle is payroll tax compliance.
Employers are expected to calculate PAYE correctly, deduct it from employees and remit it to the relevant tax authority.
Common payroll mistakes include:
- Wrong PAYE calculations
- Failure to deduct PAYE
- Late remittance of PAYE
- Poor payroll record keeping
Calculate PAYE Instantly
If your business has employees, use Payroll & PAYE Calculator to calculate PAYE deductions, payroll taxes and employee net salary.
Conclusion
CAC Annual Returns filing does not mean tax compliance.
Both are separate legal obligations that businesses must monitor carefully.
To keep your business fully compliant, ensure that you:
- File CAC Annual Returns when due
- File applicable tax returns
- Remit PAYE and other taxes promptly
- Maintain proper payroll and accounting records
Businesses with employees should also ensure accurate payroll tax calculations to avoid future tax liabilities and compliance issues.
Use Accurenza to calculate PAYE and payroll deductions quickly and accurately.
Adebayo Oluwole is Managing Partner of Adebayo Oluwole & Associates, a Chartered Accountant, ICAN Fellow, tax consultant and CAC-accredited agent. His practice provides CAC annual returns, registration and post-registration compliance support alongside accounting and tax consultancy services.
Discuss your business requirements
Speak with Adebayo Oluwole & Associates about annual returns, accounting, tax or business compliance support.