Taxation Issues In Nigeria: I intend to open a restaurant in Nigeria soon. Do I need to pay tax?

Yes. But what you pay as tax will depend on how big it is.
If it is the type we call "Mama Put" then you will need to pay only small levies to the local government of the area.
However, if it is well furnished with a distinguished name or registered as a Limited Liability Company, then you will surely require an accountant to educate you on the kind of taxes you will need to pay.
Hope this helps

remember u are running a profit making business so u will definately pay tax but the type u will pay depends on so many factors

@ all,
thanks

I intend to run a small local restaurant (the "Mama-Put" model) and then possibly grow into a large well furnished corporate type restaurant.

King-jaja witout d 'Opobo'  abeg after launching d mamaput,pls invite yrs truly 2 com taste n tell o biko 

That is after payin yr 'Tax' of cus which in Naija u just can't run away from,weather u r planing 2 own a small , medium or large scale business.

If it is in Port harcourt, get ready for Obio/Akpor boys

who are they?

I don't know who Obio/Akpor boys are but my restaurant would welcome anyone willing to patronise my "mama-put" model restaurant.

Hey King-Jaja or Jaja King, your mama put business will attract 2 baisc taxes plus other local government levies and impositions. the basic taxes are personal income tax, payable by you from your monthly income from your mama-put business, value added service: this is the out put vat chargeable @5% of the cost of any plat of food you sell to your customers. You factor in the 5% vat in the cost of each plate of food and at the end of the month you will remit all the vat collected to the nearest firs vat office. Because of this, once you commence your business, you go and register for vat at the vat office nearest to you and obtain a vat registration number, each plate of food you sell must be invoiced to enable tax men verify your remitances. you wil also be liable to withhold personal income tax from your staff and remit same to the state inland revenue office near you. the rate of pit graduates from 5% to a ceiling of 25%.

You can also avoid all these taxes by simply giving free food to any tax man that comes near your mama-put to disturb your business.

king-jaja:

I don't know who Obio/Akpor boys are but my restaurant would welcome anyone willing to patronise my "mama-put" model restaurant.

Ahh!   U dare not invite Obio Akpor boyz to yr MAma-Put restaurant o ! Shou!!

By d time they finish extorting different kind of Levies from u , ,King jaja witout d Opobo,', u will bcom 'jaja witout the crown',
Jus thank yr lucky star u r nor in PH city.

@Onyema1

You can also avoid all these taxes by simply giving free food to any tax man that comes near your mama-put to disturb your business.

this approach is better when i first start d business, because i wouldn't have made any profit by then. so trade-by-barter would be good.

Ahh! You dare not invite Obio Akpor boyz to yr MAma-Put restaurant o ! Shou!!

By d time they finish extorting different kind of Levies from u , ,King jaja witout d Opobo,', u will bcom 'jaja witout the crown',
Jus thank yr lucky star you're nor in PH city.

I may open a branch of my restaurant in PH city. I love all nigerians. So before opening my business, i would have a meeting with the Obio Akpor boyz. We discuss and iron things out like respectable human-beings . Someone told me that people in PH city are very well mannered. so i guess the Obio Akpor boyz would be willing to co-operate with me, else i show them what i got for them

Bro king jaja witout d Opobo, Its actually good to hav more Chopin centre's around since i lov food , plus i looooov d way u said u lov all Nigerians Abeg com PH com open yr chop chop joint jo.Who b Obio Apor boys sef especially not wit what u've got to show them.Abi?

Bro carry GOOOOOO!!

hi king Jaja,

Tax payment is your civic responsibilities. you have to pay your tax, depending on the kind of business you want to start, your level of operation, no of employees and other things. you will have to paycorporate tax if it is a limited company and /or personal income tax for your self and your employees. there is no way you escape paying these taxes and other levies especially if the buz is to be in lagos.
The coporate tax goes to the federal government (FIRS) and the personal income tax goes the state government.
If you need more info you can reach me via haywyer4jazz@yahoo.com.
So long everyone.

Yes that is right what you pay as tax will depend on how big it is.

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