100+ Free CITN Test of Professional Competence (TPC) Practice Questions

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Sample CITN Test of Professional Competence (TPC) Practice Questions

Try these sample questions to test your CITN Test of Professional Competence (TPC) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Nigeria Tax Act 2025 (NTA), which of the following pre-2026 Nigerian tax statutes was repealed and consolidated into the single unified tax framework?

A.Companies Income Tax Act (CITA)

B.Financial Reporting Council of Nigeria Act

C.Banks and Other Financial Institutions Act (BOFIA)

D.Nigeria Customs Service Act

Explanation: The Nigeria Tax Act 2025 (NTA), effective 1 January 2026, repealed and replaced pre-existing direct and indirect tax statutes including the Companies Income Tax Act (CITA), Personal Income Tax Act (PITA), Petroleum Profit Tax Act (PPTA), Value Added Tax Act (VATA), Capital Gains Tax Act (CGTA), and Stamp Duties Act into a consolidated legislative framework.

2Under the Nigeria Tax Act 2025 (NTA), what is the tax-exempt threshold for annual individual personal income tax (PAYE)?

A.The first ₦800,000 of annual income is taxed at 0%

B.The first ₦300,000 of annual income is taxed at 0%

C.The first ₦1,500,000 of annual income is taxed at 0%

D.Individual income is fully taxable from ₦1 with no tax-exempt band

Explanation: Under the NTA 2025 PAYE structure, the first ₦800,000 of an individual's annual income is taxed at a progressive rate of 0%, effectively establishing a tax-free baseline for low-income earners and primary wages.

3An individual taxpayer earning ₦6,000,000 annually pays ₦2,000,000 in actual rent for their primary residential accommodation. Under NTA 2025, what is the maximum allowable Rent Relief deduction?

A.₦400,000

B.₦500,000

C.₦1,200,000

D.₦200,000

Explanation: NTA 2025 abolished the Consolidated Relief Allowance (CRA) and introduced Rent Relief, which allows a deduction equal to the lower of 20% of annual rent paid or ₦500,000. Here, 20% of ₦2,000,000 equals ₦400,000. Since ₦400,000 is lower than the ₦500,000 ceiling, the allowable deduction is ₦400,000.

4A corporate executive pays ₦3,500,000 in annual rent for a primary residence. Under NTA 2025, how much Rent Relief can be claimed against taxable income?

A.₦500,000

B.₦700,000

C.₦350,000

D.₦1,000,000

Explanation: Under NTA 2025, Rent Relief is calculated as 20% of annual rent paid, subject to an absolute maximum cap of ₦500,000. Calculating 20% of ₦3,500,000 yields ₦700,000; because this exceeds the statutory limit, the claim is capped at ₦500,000.

5An employee has a gross annual taxable income of ₦5,000,000 and pays ₦1,500,000 in annual rent for their primary home. Computing PAYE under NTA 2025, what is the net annual personal income tax liability?

A.₦636,000

B.₦690,000

C.₦750,000

D.₦570,000

Explanation: First compute Rent Relief: lower of 20% of ₦1,500,000 (₦300,000) or ₦500,000, which is ₦300,000. Chargeable income = ₦5,000,000 - ₦300,000 = ₦4,700,000. Applying NTA 2025 tax bands: First ₦800,000 @ 0% = ₦0; Next ₦2,200,000 (from ₦800k to ₦3.0m) @ 15% = ₦330,000; Next ₦1,700,000 (from ₦3.0m to ₦4.7m) @ 18% = ₦306,000. Total annual tax liability = ₦0 + ₦330,000 + ₦306,000 = ₦636,000.

6Under NTA 2025, which entity qualifies as a 'small company' exempt from Corporate Income Tax (CIT)?

A.A manufacturing company with gross annual turnover of ₦80 million and total fixed assets of ₦150 million

B.A legal partnership providing professional tax litigation services with annual turnover of ₦45 million

C.A commercial trading company with gross annual turnover of ₦120 million and total fixed assets of ₦80 million

D.A logistics provider with gross annual turnover of ₦70 million and total fixed assets of ₦300 million

Explanation: NTA 2025 defines a small company as an entity with gross annual turnover not exceeding ₦100 million AND total fixed assets not exceeding ₦250 million. A manufacturing company with ₦80 million turnover and ₦150 million assets meets both conditions and qualifies for the 0% CIT rate.

7What is the standard Corporate Income Tax (CIT) rate applicable to large companies (gross turnover exceeding ₦100 million) under NTA 2025?

A.30%

B.20%

C.15%

D.35%

Explanation: Under NTA 2025, the standard rate of Corporate Income Tax (CIT) for companies exceeding small company thresholds (turnover > ₦100 million) is 30% of assessable profits.

8A large manufacturing company reports assessable profits of ₦45,000,000 for the tax year under NTA 2025. What is its Corporate Income Tax (CIT) liability?

A.₦13,500,000

B.₦9,000,000

C.₦0

D.₦6,750,000

Explanation: For a large company, the statutory CIT rate under NTA 2025 is 30%. Applying 30% to assessable profits of ₦45,000,000 yields ₦13,500,000.

9Under NTA 2025 withholding tax provisions, what is the status of Withholding Tax (WHT) deducted from dividends paid to a resident individual shareholder?

A.WHT deducted from dividend income serves as a final tax for resident individual shareholders

B.WHT on dividends is always an advance tax credit requiring annual PAYE reconciliation

C.Dividends paid by resident companies are completely exempt from WHT deduction at source

D.WHT on dividends must be refunded by the tax authority upon submission of tax clearance

Explanation: Under NTA 2025 and prevailing withholding tax rules, WHT deducted at source on dividends paid to resident individual shareholders represents a final tax. The individual is not required to include dividend income in their progressive annual income tax return for further taxation.

10A corporate taxpayer intends to file an appeal before the Tax Appeal Tribunal (TAT) challenging an assessment notice under NTA 2025. What procedural requirement regarding undisputed tax must be satisfied?

A.The taxpayer must pay any undisputed tax portion into a designated account before filing the appeal

B.The taxpayer must deposit 100% of both disputed and undisputed tax with the High Court

C.The taxpayer is exempt from paying any portion of tax until the appeal is finally determined by the Supreme Court

D.The taxpayer must provide a bank guarantee equal to double the total disputed assessment

Explanation: Under Tax Appeal Tribunal (TAT) procedural rules incorporated in NTA 2025, a taxpayer appealing an assessment must pay any undisputed tax amount to the tax authority or designated escrow account as a prerequisite for hearing the dispute.

About the CITN Test of Professional Competence (TPC) Exam

The CITN Test of Professional Competence (TPC) is the capstone examination for admission to the Chartered Institute of Taxation of Nigeria. This 100-question MCQ practice bank serves as an English-language study adaptation to test candidate mastery of the Nigeria Tax Act 2025 (NTA), tax computations, ethics, and integrated case analysis. Note: MCQs support knowledge review but do not substitute for written case essay preparation.

Assessment

3-hour computer-based written case study (pre-seen material released ~2 weeks before diet, plus unseen case requirements on exam day)

Time Limit

3 hours

Passing Score

50%

Exam Fee

₦65,000 (Chartered Institute of Taxation of Nigeria (CITN))

CITN Test of Professional Competence (TPC) Exam Content Outline

20%

Tax Law Application & NTA 2025 Provisions

Application of the Nigeria Tax Act 2025 (NTA), statutory definitions, tax bands, exemptions, and transition rules.

20%

Information Assimilation & Pre-seen Analysis

Critical evaluation of pre-seen case scenarios, corporate tax profiles, financial statements, and client information.

20%

Technical Tax Computations & Case Analysis

Quantitative analysis including PAYE income tax, Rent Relief, corporate tax, withholding tax, and VAT.

20%

Professional Ethics, Executive Summary & Judgment

CITN code of professional conduct, conflict of interest, tax evasion versus avoidance, and executive summary writing.

10%

Tax Administration, TAT Procedure & Compliance

Tax Appeal Tribunal procedural rules, assessment notices, tax audit management, and statutory filing deadlines.

10%

Practical Tax Advisory & Strategy

Formulating client-focused tax advisory reports, corporate restructuring, international tax considerations, and risk mitigation.

How to Pass the CITN Test of Professional Competence (TPC) Exam

What You Need to Know

Passing score: 50%
Assessment: 3-hour computer-based written case study (pre-seen material released ~2 weeks before diet, plus unseen case requirements on exam day)
Time limit: 3 hours
Exam fee: ₦65,000

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

Frequently Asked Questions

What is the official format of the CITN TPC examination?

The official CITN TPC exam is a 3-hour computer-based written case study. Candidates receive pre-seen case materials approximately 2 weeks prior to the exam and must complete unseen requirements during the exam session.

Which tax laws are examined in the CITN TPC examination?

The examination tests current Nigerian tax law under the Nigeria Tax Act 2025 (NTA), which repealed PITA, CITA, PPTA, VATA, CGTA, and the Stamp Duties Act effective 1 January 2026.

What is the passing score for the CITN TPC exam?

Candidates must achieve an overall score of at least 50% across all marking criteria (assimilating information, tax law application, conclusions, logical consistency, experience, and executive summary/ethics).

How does this practice bank help prepare for a written case study exam?

Our 100-question MCQ bank is an English-language study aid designed to test underlying technical tax rules, NTA 2025 statutory thresholds, PAYE/Rent Relief calculations, TAT procedural rules, and ethical standards. It reinforces technical knowledge but should be paired with written essay practice.