03 Mar 2016
March 3, 2016

Tax Compliance

Every entity operating in Nigeria or derives revenue from Nigeria is expected to be tax compliance. In Nigeria, we currently operate a regime of self assessment. Self assessment is a method whereby taxpayer is required to correctly compute his liability, complete the tax returns. Pay the self – assessed tax and submit the tax returns together with the accompanying documents on or before due date according to relevant tax law. Some taxes are payable to Federal Inland Revenue Service

Entities are expected to render returns and pay the tax due within stipulated time as allowed by relevant tax laws. Some tax have specific rates, so tax payable is quite straight forward while other are a little complex and the service of a professional would be needed. Some returns are filed monthly while others are filed on a yearly basis.

Some of the monthly and yearly returns are itemized below

Tax                                                                                                                                 Relevant Revenue Services

  • Monthly Returns

 

  • Value Added Tax (VAT)                                                                                 FIRS
  • Withholding Taxes (WHT)                                                                              FIRS/SIRS
  • Pay as you earn (PAYE)                                                                                 FIRS/SIRS
  • Yearly Returns

 

  • Company Income Tax                                                                                     FIRS
  • Personal Income Tax                                                                                       FIRS/SIRS
  • Education Tax                                                                                                  FIRS
  • Capital Gain Tax                                                                                              FIRS/SIRS
  • Information Technology Tax                                                                            FIRS
  • Development levy                                                                                            SIRS
  • Business Premises levy                                                                                   SIRS
  • Minimum tax                                                                                                     FIRS/LIRS

Each of the tax specified above is governed by specific tax law, not all the tax listed above applies to all companies. Not filing returns as at when due attracts penalties.

Depending on the size and management style of an entity, in-house tax personnel can be employed or the service of a consultant is engaged to ensure the company is up to date on its tax matters.

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