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Re: Tax In Nigeria: How Is It Calculated? by alphaconde(m): 2:27pm On Jan 11, 2021 |
I tut businesses with less than 20m yearly turn over need not pay taxes |
Re: Tax In Nigeria: How Is It Calculated? by ModestGal(f): 2:27pm On Jan 11, 2021 |
G |
Re: Tax In Nigeria: How Is It Calculated? by ModestGal(f): 2:27pm On Jan 11, 2021 |
Okay |
Re: Tax In Nigeria: How Is It Calculated? by Mrshocker(m): 2:32pm On Jan 11, 2021 |
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Re: Tax In Nigeria: How Is It Calculated? by Jimoh7555: 2:34pm On Jan 11, 2021 |
Get a qualified tax practitioner and your headaches will be gone for good. DM me if you need one |
Re: Tax In Nigeria: How Is It Calculated? by chloride6: 2:38pm On Jan 11, 2021 |
ascek: Well according to the newly signed finance act of 2020, assuming you are under the 25 million turnover band, you are tax exempt. Tax exempt does not mean you not should file your taxes. |
Re: Tax In Nigeria: How Is It Calculated? by dfrost: 2:44pm On Jan 11, 2021 |
famouscargo4u: Explain it to him/her. It doesn't stop him from hiring a professional. Everything to the black man is shrouded in secrecy. 8 Likes |
Re: Tax In Nigeria: How Is It Calculated? by Coldie(m): 2:49pm On Jan 11, 2021 |
In Nigeria tax is given according to hear say and gossips. If they look at your business and everywhere looks fine and modern that means u are making so much money there, be sure to receive letters from LGA officials on levy and tax Soon 5 Likes |
Re: Tax In Nigeria: How Is It Calculated? by sojfarm: 2:49pm On Jan 11, 2021 |
ascek: There are more to accounting and Tax computation than plus and minus. In Nigeria, all registered entities are Tax collection Agencies for government: Therefore, BnX Nig Ltd may be expected to pay, deduct and remit on the following taxes: Payroll taxes Withholding tax VAT CIT amongst other: small companies with total revenue less than N25m are exempted from paying CIT. In the case of Bnx Nig Ltd, its revenue information is not here disclosed. You only mentioned N500,000 after deduction of all operating expenses. Hence, it is difficult to conclude if the company/business is exempted from paying CIT. I can render accounting service to you at a very affordable rate. There are more from accounting services to business than tax compuation. You can reach me on 09030299101 for detail consultation and computation |
Re: Tax In Nigeria: How Is It Calculated? by Adekdammy: 2:51pm On Jan 11, 2021 |
VAT @ 7.5% on or before 21st of every month C.IT: Turnover of 25M to 100M attracts 20% based on your accounting year ended but you file nil returns if your turn over is not up to 25M EDT : 2% of assessable profit. Other taxes include PATE and WHT remitted to the state inland revenue WHT remitted to the federal inland revenue |
Re: Tax In Nigeria: How Is It Calculated? by studentofTruth: 2:51pm On Jan 11, 2021 |
Both lawyers and accountants like confusing people on this Tex. issue |
Re: Tax In Nigeria: How Is It Calculated? by Olaideolayemi(m): 2:59pm On Jan 11, 2021 |
To op.. initially, I am'nt an accountant or FIRS employee,but in my own opinion,y don't you find an accountant who knows how tax is calculated,in order to avoid confusion in business management,Or go to nearest FIRS office to gather information about the least amount you can pay for tax, before commencement of business operation..I had from different sources,how taxes is affecting many business entreprises in Nigeria.. gathering enough Information,will give you realistic decision about tax and how to manage in future..Many people here are suggesting, they don't know real fact about, how the tax work..if you fail to do comprehensive research before operation,it may affect you, business and also the future anticipation of the business.. Wishing you Good luck in your finding... 1 Like |
Re: Tax In Nigeria: How Is It Calculated? by vioment: 3:00pm On Jan 11, 2021 |
Only Nigeria in the world of countries, that doesn't have a clear tax procedure or rules that even the experts know about. If you go to finance or interior affairs or works or even cbn, nobody knows. You will end up going in circles. No clear business rules of conduct. That is why, anybody can come up to your business and just request you pay this or that without a credible proof of authority. The sg need to work with fg, and clear the rules on these things, including for international business people in Nigeria. 1 Like |
Re: Tax In Nigeria: How Is It Calculated? by iamJ(m): 3:03pm On Jan 11, 2021 |
how can capital of 2m generate more than 500k profit |
Re: Tax In Nigeria: How Is It Calculated? by Academicwizman(m): 3:04pm On Jan 11, 2021 |
ascek: This your N500,000 profit, I hope you have deducted your own salary as a manager (if you manage the business yourself)? Your salary will serve as your Personal Income on which you are required by the State to pay Personal Income Tax (PIT) and development levy (applying residency rule). While CIT, VAT is a federal tax, PIT is collected by States in Nigeria. 1 Like |
Re: Tax In Nigeria: How Is It Calculated? by iamJ(m): 3:06pm On Jan 11, 2021 |
meetgaya:absolute authority |
Re: Tax In Nigeria: How Is It Calculated? by sojfarm: 3:07pm On Jan 11, 2021 |
alphaconde: Actually, less than N25m annual total revenue (not profit) are exempted from CIT (company income tax). This does not include obligations on other form of taxes including PAYE, VAT, WHT amongst others. |
Re: Tax In Nigeria: How Is It Calculated? by donephi(m): 3:08pm On Jan 11, 2021 |
Trustedpro:the 7.5% tax is it the CIT, CGT or VAT. Please explain |
Re: Tax In Nigeria: How Is It Calculated? by Babalegba(m): 3:11pm On Jan 11, 2021 |
ascek:it's calculated haphazardly and unilaterally. You are in a hovel of a country populated by phoney greedy human beings , remember. |
Re: Tax In Nigeria: How Is It Calculated? by Coronavirus84: 3:14pm On Jan 11, 2021 |
famouscargo4u:VAT in supply is 7.5% , WHT is 5% and Stamp duty is 1% |
Re: Tax In Nigeria: How Is It Calculated? by alphaconde(m): 3:20pm On Jan 11, 2021 |
sojfarm: thanks for schooling me joor God bless u |
Re: Tax In Nigeria: How Is It Calculated? by onward4life(m): 3:27pm On Jan 11, 2021 |
Trustedpro: I thought it was 7.5 of profit and or loss? |
Re: Tax In Nigeria: How Is It Calculated? by Engr1(m): 3:37pm On Jan 11, 2021 |
Re: Tax In Nigeria: How Is It Calculated? by edoairways: 3:38pm On Jan 11, 2021 |
ascek:7.5% tax on profit, how? |
Re: Tax In Nigeria: How Is It Calculated? by Deeno1: 3:43pm On Jan 11, 2021 |
alushkimo: This is the best contribution thus far. In addition,two companies with the same net profit of N500,000 are not likely to pay the same company income tax,because the allowable and non allowable expenses and income, would be different.That is, their taxable profit, different from declared net profit,based on the applicable tax laws would be different. It is the content and character and not the absolute figure of your net profit that determines your company's tax. Your tax liability can never be determined on this platform without providing the full details of your financials. Please consult an accountant for accurate determination of your tax liability. However,if you do not mind to provide the full details of your financials publicly,,your tax liability can be determined,right on this platform. This could be a learning opportunity for other entrepreneurs. www.deeno.com.ng Accountancy,Financial and Risk Solutions. 1 Like |
Re: Tax In Nigeria: How Is It Calculated? by ThierryJay: 3:43pm On Jan 11, 2021 |
ascek: OP, Let me simplify this for you. The only relevant information you provided to answer your question, is that you made a net profit of N500thousand. You did not provide info about your company's turnover. Therefore, I will clarify based on assumed scenarios. If your annual revenue/turnover that generated the 500k profit is less than N25million, you are exempted from paying any corporate income tax to the Government on the 500k profit. This is because you will be considered as a small company. If your turnover is between N25 - 100million, you will pay 20% of your taxable profit as corporate tax. (Note that taxable profit is not the same as your 500k here but is calculated based on specific rules in the tax law). Also, note that your company is not required to pay any VAT (different from income tax) to the Government where your annual turnover is less than N25million. The current VAT rate is 7.5% and your company will only be required to include it in your invoices to your customers and remit it to the FG where your yearly revenue is above 25million. 6 Likes 1 Share |
Re: Tax In Nigeria: How Is It Calculated? by fkj950ax(m): 3:54pm On Jan 11, 2021 |
prodigyy: And we will sit together tomorrow and discuss #EndBadGovernaceInNigeria |
Re: Tax In Nigeria: How Is It Calculated? by Nobody: 3:54pm On Jan 11, 2021 |
Trustedpro: Which country, is that in Nigeria? Do you know what you writing down. VAT AND COMPANY INCOME TAX ARE 2 DIFFERENT STUFF |
Re: Tax In Nigeria: How Is It Calculated? by Nobody: 3:59pm On Jan 11, 2021 |
ThierryJay: THIS IS THE CORRECT ANSWER. BUT THAT IS THE NEW FEDERAL TAX LAW BEFORE IT WAS A FIXED RATE OF 30% The state also have their own tax like Business Premises Tax. |
Re: Tax In Nigeria: How Is It Calculated? by EMDN: 3:59pm On Jan 11, 2021 |
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Re: Tax In Nigeria: How Is It Calculated? by Mosfemi: 4:00pm On Jan 11, 2021 |
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