Below are some of the type of taxes in Nigeria especially for small companies. Kindly contact us via info@virtualaccountant.ng or whatsapp +234(0)8029753761 or Call +234(0) 08086108687. You can also see our website: www.virtualaccountant.ng

1.VAT

VAT is a tax on consumption. It is charged on Revenue earned and paid to the FIRS. It is at the rate of 5%. However VAT is not to be charged on reimbursement. Failure to pay VAT will attract interest and penalties at 21% and 15% respectively. Please note that filing VAT is a monthly obligation and it is expected to be done on or before 21st of the month subsequent to the month of transaction. Failure to file the returns will mean a penalty for every month of default cumulatively.

2.Withholding tax (WHT)

This is a tax on contract jobs. It is deducted from your expenses and remitted to the relevant tax authority. For example, if MTN has a contract with your company, at the point of payment, you will deduct 10% (5% for an enterprise) from their payment and remit to either FIRS (for companies) or State IRS (Individuals and Companies). The rate for rent is 10%. The WHT is an advance payment of Tax.
If you work for government agencies, they will deduct both VAT and WHT from your payment. Failure to deduct WHT will attract penalties and interest as well.

3.PAYE TAX

This is to be deducted from employee pay and remitted on or before 10days after payment of employees’ salary. Failure to pay as at when due will attract interest and penalties. Please note that interest and penalties are subject to CBN’s pronouncement and could vary from time to time.

4.BUSINESS TAXES

This is the income tax on the enterprise itself. It is to be computed yearly and paid on or before 6months after year end of the business. Failure to file the returns will attract NGN 25,000 on the first month of default and NGN 5,000 on subsequent months.

However with VAIDS which will end on 31st March 2018, the penalties can be dropped while the compliance is kept to date.

We can assist you on this by Ensuring that proper accounting records are kept, financial statement is prepared and filed with the relevant authority. We can as well advice you on how to structure your invoice and reduce possible tax liabilities. Please note that every finance decision has a tax implication.

Source: http://www.virtualaccountant.ng/some-types-of-taxes-in-nigeria/