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 in Nigeria of 7.5% will not apply to these items. Therefore, it…
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 multiplying the tax rate by the taxable profit minus any tax credit(s)….
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 Assets CbCR – Country by Country Reporting CGT – Capital Gains Tax…
Registering for taxes with the Federal Inland Revenue Service (FIRS) is the first step in complying with the Nigerian tax law. After registration, FIRS will issue a tax identification number (TIN) to the new user. TIN is important for opening a corporate bank account, and issuing a tax invoice to a customer. Other benefits are…
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 are official car, accomodation. Valuation of benefits Where an employer provides any…
Here are solutions to the problems in getting Joint Tax Board (JTB) TIN registration and verification in Nigeria. From January 1 2026, the new name of JTB is Joint Revenue Board (JRB). FAQs 1. How do I register for JTB TIN (tax identification number) online? JRB does not issue a separate TIN. Application for a…
INTRODUCTION A tax return is a document submitted by a taxpayer to the revenue authority. The contents of a typical tax return include the taxpayer’s name, taxpayer identification number, month or year of assessment, income/profit, tax payable (if any), and declaration section. There are two instances where a taxable person will file tax returns in…
The Federal Government of Nigeria has released the Gazette dated 2 October 2024 on deduction of tax at source (Withholding) regulations, 2024. These Regulations amends the previous withholding tax (WHT) rules except Pay-As-You-Earn (PAYE) tax. It contains the following; transactions subject to deduction transactions that are not liable to deduction of tax at source in Nigeria or Nigerian…
The Nigerian Investment Promotion Commission (NIPC) aims to boost and coordinate the participation of foreign businesses in the country. On 2 September 2024, NIPC issued a revised service fee schedule for business registration and pioneer status incentives in Nigeria. The new fees will apply from October 1 2024. NIPC has also introduced a fee for…
What is TaxPro Max? TaxProMax is an online portal by the Federal Inland Revenue Service (FIRS) that seeks to ease tax compliance procedures in Nigeria. The electronic platform allows taxpayers to register for tax, and apply for and check the validity of tax clearance certificate (TCC). Other features include filing monthly and annual tax returns, file…