President Tinubu has signed Nigeria’s tax reform bills into law. The four tax reform bills are; Nigeria Tax Bill (Fair Taxation) Nigeria Tax Administration Bill Nigeria Revenue Service (Establishment) Bill Joint Revenue Board (Establishment) Bill The reform seeks to increase investor confidence, improve…
Businesses in Nigeria will file withholding tax (WHT) returns on TaxProMax for amounts withheld on payment to companies. Withholding tax deducted from certain transactions with companies is payable to the Federal Inland Revenue Service (FIRS). When the WHT return is filed successfully, the…
PAYE tax is calculated on employee’s salary and remitted monthly to the revenue authority. To calculate the monthly PAYE tax on employment income, use the free calculator below. Please note that the calculator is only an estimate and does not include the changes…
The value added tax (VAT) rate in Nigeria is seven point five percent (7.5%). However, the VAT rate cannot be applied to all transactions. Why? Some goods and services are either zero-rated or exempt from VAT. In such instances, the standard VAT rate…
Allowable expenses are expenses that can reduce the taxable income (or profit) of an individual or business. Another name for an allowable expense is a tax-deductible (TD) expense. This type of expense lowers the amount of tax payable. Tax payable is calculated by…
The following terms shows the list of common tax acronyms for ease of reference. APA – Advance Pricing Agreement AYB – Actual Year Basis BEPS – Base Erosion and Profit Shifting BIK – Benefits in Kind CAFA – Certificate of Acceptance of Fixed…
Registering for taxes with the Nigeria Revenue Service (formerly Federal Inland Revenue Service or FIRS) is the first step in complying with Nigerian tax law. After registration, the Nigeria Revenue Service (NRS) will issue a taxpayer ID (formerly tax identification number or TIN)…
Compensation can in cash or non-cash. Benefits in kind (BIK) can be defined as non-monetary benefits granted by an employer to an employee. It is common for an employer to grant BIK to an employee in mid-level management or above. Examples of BIK…
