How Finora Computes Your CIT Automatically: Complete Feature Guide

Computing Company Income Tax is complex. It requires tracking revenue for classification, identifying deductible expenses, calculating capital allowances, managing WHT credits, and preparing compliant returns. Finora automates this entire process, transforming CIT compliance from annual stress into seamless efficiency.

The CIT Computation Challenge

Nigerian businesses face significant CIT challenges:

Challenge	Impact
Turnover tracking	Wrong company classification
Expense classification	Missed deductions or over-claiming
Capital allowances	Complex calculations
WHT credit tracking	Lost tax credits
Deadline management	Late filing penalties
Documentation	Audit vulnerability

Finora addresses each challenge through intelligent automation.

Automatic Company Classification

Turnover Tracking

Finora monitors your revenue in real-time:

Classification	Turnover	CIT Rate
Small	< ₦25M	0%
Medium	₦25M - ₦100M	20%
Large	> ₦100M	30%

Real-Time Status

Your dashboard shows:

• Year-to-date turnover
• Current classification
• Projected full-year status
• Alert if approaching threshold

Threshold Alerts

Receive notifications when:

• Approaching ₦25M (small→medium)
• Approaching ₦100M (medium→large)
• Classification changes

Smart Expense Classification

Automatic Categorization

When you record expenses, Finora:

1. Identifies expense type from description/category
2. Determines tax treatment (deductible/non-deductible)
3. Flags items needing review
4. Records for CIT computation

Pre-Configured Categories

Category	Tax Treatment	Finora Action
Staff salaries	Deductible	Include in deductions
Depreciation	Add back	Auto-add back, claim CA
Rent	Deductible	Include in deductions
Entertainment	Limited	Flag for review
Penalties	Not deductible	Auto-add back
Donations	Limited	Check approval status

Exception Flagging

Finora alerts you to:

• Personal expenses in business accounts
• Unusually large items
• Items requiring documentation
• Potential disallowed expenses

Capital Allowance Automation

Fixed Asset Module

Track all capital assets:

Asset Registration:

• Enter purchase details
• System assigns CA category
• Automatic rate determination

Asset Categories:

Category	Initial	Annual
Plant/machinery	50%	25%
Motor vehicles	50%	25%
Furniture	25%	20%
Buildings	15%	10%

Automatic Calculation

Each year-end:

• New assets: IA + first AA
• Existing assets: Annual allowance
• Disposals: Balancing adjustment
• Schedule generation: NRS format

Disposal Tracking

When you sell or scrap assets:

• Enter disposal details
• Automatic balancing calculation
• Gain/loss determined
• CA schedule adjusted

WHT Credit Management

Credit Certificate Tracking

When clients deduct WHT from your income:

Recording Credits:

• Enter certificate details
• Link to income transaction
• Attach scanned copy
• Track by payer and period

Credit Summary:

• Running total of credits
• Matched to income
• Ready for CIT offset

Automatic Offset

At year-end:

• Total WHT credits calculated
• Offset against CIT liability
• Net CIT payable determined
• Excess credits carried forward

Example:

Item	Amount
CIT computed	₦15,000,000
WHT credits	(₦5,000,000)
Net CIT payable	₦10,000,000

Real-Time CIT Dashboard

Know Your Position

See at a glance:

Metric	Display
Company classification	Small/Medium/Large
Estimated taxable profit	Running calculation
Projected CIT	Based on current data
WHT credits available	For offset
Net CIT estimated	After credits

Trend Analysis

Track over time:

• Monthly profit trends
• Year-over-year comparison
• Tax position trajectory

One-Click CIT Computation

Year-End Process

When it's time to prepare your CIT return:

1. Click "Prepare CIT Computation"
2. System compiles data:

• Revenue and classification
• Expenses by category
• Non-deductible items
• Capital allowances
• WHT credits

1. Review and adjust
2. Generate computation schedule

Computation Schedule

Finora generates NRS-compliant format:

ABC COMPANY LIMITED
COMPANY INCOME TAX COMPUTATION Year Ended December 31, 2024
₦               ₦ Profit per accounts                                     50,000,000 Add: Depreciation                     10,000,000 Entertainment (excess)              500,000 Penalties                           200,000 Non-approved donations              300,000        11,000,000
----------- 61,000,000 Less: Capital allowances                              (12,000,000)
----------- Taxable profit                                         49,000,000 ===========
Company classification: Large (Turnover > ₦100M) CIT Rate: 30% CIT Payable: ₦14,700,000
Less: WHT Credits                                      (4,500,000)
----------- Net CIT Payable                                        10,200,000 ===========

Supporting Schedules

Generated Automatically

Along with the computation:

Schedule 1: Add-Backs

• Depreciation breakdown
• Disallowed expenses
• Provisions added back

Schedule 2: Capital Allowances

• Asset-by-asset detail
• IA and AA calculations
• Disposals and adjustments

Schedule 3: WHT Credits

• Certificate listing
• Payer details
• Matching to income

Schedule 4: Related Party Transactions

• Intercompany transactions
• Transfer pricing support

Tertiary Education Tax

Automatic TET Calculation

Finora also computes TET:

Item	Amount
Assessable profit	₦49,000,000
TET @ 2.5%	₦1,225,000

Combined Tax Position

See your total tax obligation:

Tax	Amount
CIT	₦10,200,000
TET	₦1,225,000
Total	₦11,425,000

Deadline Management

Filing Calendar

Finora tracks your CIT deadline:

• Year-end date
• Filing deadline (6 months later)
• Days remaining
• Status (on track/at risk)

Reminder System

Timing	Notification
3 months before	Start year-end close
2 months before	Engage auditors
1 month before	Finalize computation
2 weeks before	Complete documentation
1 week before	File return

Progress Tracking

Checklist of required actions:

• [ ] Year-end close complete
• [ ] Accounts finalized
• [ ] CIT computation prepared
• [ ] Supporting schedules ready
• [ ] Return filed
• [ ] Payment made

Audit-Ready Documentation

Complete Records

Every data point has:

• Source transaction
• Classification reason
• Supporting document
• Approval trail

Document Attachment

Attach supporting files:

• Invoices and receipts
• Asset documentation
• WHT certificates
• Contracts and agreements

Export Options

Generate files for:

• NRS submission
• Auditor review
• Management reporting
• Archive storage

Multi-Year Tracking

Historical Data

Access prior years:

• Previous computations
• Filed returns
• Comparison analysis
• Trend identification

Loss Carry Forward

If your company has losses:

• Track unused losses
• Apply relief against future profits
• Monitor 50% utilization cap
• Project future relief

Integration Features

Accounting System

CIT data flows from:

• General ledger transactions
• Fixed asset register
• Accounts payable/receivable
• Bank reconciliations

Financial Statements

Alignment with:

• Statement of profit or loss
• Statement of financial position
• Notes to accounts

Getting Started

Step 1: Set Up Company Profile

• Enter company details
• Select accounting year-end
• Configure tax settings

Step 2: Import or Enter Data

• Connect existing accounts
• Or enter transactions fresh
• Import historical data if available

Step 3: Categorize Properly

• Review expense categories
• Flag non-deductible items
• Set up asset register

Step 4: Track Throughout Year

• Regular transaction entry
• Monitor tax position
• Address issues early

Step 5: Prepare CIT Return

• Generate computation
• Review and adjust
• Export for filing

Real Results

Finora users report:

Metric	Improvement
CIT preparation time	70% reduction
Errors in computation	Near elimination
Late filing	Eliminated
Missed deductions	Significantly reduced
Audit confidence	Substantially higher

Security and Reliability

Data Protection

• Bank-level encryption
• Secure cloud storage
• Regular backups
• Access controls

Compliance

• NDPR compliant
• NRS-format outputs
• Audit trail maintained

Frequently Asked Questions

Does Finora file directly to NRS?

Finora prepares NRS-compliant computations and schedules. You submit through TaxPro Max. Direct integration may be available in future.

Can I handle complex situations like losses or related parties?

Yes. Finora tracks loss carry-forwards, manages related party transactions, and handles various complex scenarios.

What if I have multiple companies?

Each company can be set up separately. Group-level reporting and management is available.

How quickly can I get started?

Most businesses are operational within a few days. Import historical data or start fresh.

Is training provided?

Yes. Help documentation, guided setup, and support are included with all plans.

Conclusion

CIT computation doesn't have to be an annual nightmare. Finora automates the entire process:

• Automatic classification based on turnover
• Smart expense categorization for maximum deductions
• Capital allowance calculation for all assets
• WHT credit tracking to reduce tax payable
• One-click computation with NRS-compliant format
• Deadline management to avoid penalties

Join hundreds of Nigerian businesses that have simplified their CIT compliance with Finora.

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