Hello Ayinuola, tax is deducted from profit made by a company, you do not pay when you have not made anything but you are to file returns to show that you are in existence. A newly incorporated company is expected to register with FIRS for tax purposes. The company however has two options, either to file the required tax returns without paying tax as there is a slight difference between the two, an example is filing of Vat returns, stating that it has not commenced business. This simply means that the company only files returns to show that it is still in existence but does not pay tax because business has not commenced. The second option available to the company is to make an application immediately after registering for tax to be exempted from filing the returns from time to time,for a certain period of time because it has not commenced business. I hope you find this helpful.