₦airaland Forum

Personal Income Tax in Nigeria
Resident and non-resident individuals of a nation are subject to personal income tax (PIT) imposed upon them by that nation’s government. The income tax policy in Nigeria has gone through major updates in recent times. Individuals, whether resident or non-resident, in Nigeria are subject to tax under Personal Income Tax Act (PITA) as amended in 2011. According to PITA, the PIT is imposed by three tiers of the government – Federal, state and local, with each having its clearly demarcated jurisdiction. PITA mentions that there are certain categories of individual who pay their taxes to the Federal government. These categories contain resident individuals belonging to the Armed forces, the police, the External Affairs, residents of Abuja Federal Capital Territory (FCT) and non-residents.
Earnings of resident individuals, referred to as personal income, include income derived outside Nigeria. There are few classes of individuals who are specifically exempted from tax under PITA. The personal income tax is imposed on different sources like labour, pensions, interest and dividends. The benchmark used for tax calculation from individuals is known as the Top Marginal Tax Rate. The PIT is composed of direct assessment for self-employed individuals, and Pay As You Earn (PAYE) for salaried individuals. PAYE is a method of collecting PIT from the salaries and wages of individuals through deduction at source by employers as provided by relevant sections of the PITA. The tax is usually collected from an individual by the government of his/her residential state. The income tax rate of resident individuals varies from 7 per cent to 24 per cent on the basis of taxable income. The minimum tax rate is 1 per cent of gross income if the taxable income is below N 300,000.
Tax on non-resident Nigerians is levied on income which is based on Nigerian sources. A non-resident’s income from employment or business is taxed in the manner similar to that of a resident Nigerian. Expatriate employees of a non-resident company who are present in Nigeria for more than 183 days in a 12-month period, shall be considered as resident individuals for PIT if their employment costs are charged to a Nigerian company or borne by a fixed base in Nigeria. However, if the expatriates are liable to tax in another country that has entered into a double tax avoidance treaty with Nigeria, then such individuals shall be exempted from PIT in Nigeria.
Besides individuals, personal income tax is also collected from communities, families and trustees. PIT on a community is imposed in accordance with the law of the corresponding domicile territory. PIT on communities is levied when it is found impracticable by relevant tax authorities to assess individual incomes. A family recognised under any law or custom in Nigeria is subject to PIT if the interests of individual members of the family are indeterminate or uncertain. Trustees of settlements or trusts and executors of any estate of a deceased person are subject to PIT, and it is imposed by relevant tax authority whose territorial jurisdiction is decided by Second Schedule of PITA.
Non-taxable deductions under PITA include National Housing Fund contributions, National Health Insurance Scheme contributions, Life Assurance Premium, National Pension Scheme and gratuities.
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Online Tax services are one of the most important aspects of the business and all the finance related activities and it is due to the fact that the best business is considered the one that files the tax returns within time and in an accurate manner. Online Tax services therefore should be chosen with extreme care and precaution to make sure that the best services are enjoyed within the budget that has been allocated for this activity. Once the Online Tax services have been hired the company should make sure that the services are judged for their efficiency and effectiveness. Making the best use of Online Tax services is only possible if certain characteristics are judged in this regard to make sure that the best outcome is enjoyed. Online Tax services are the best as they save time, money as well as the hard work that the businesses used to do in the past when filing the returns. Online Tax services has also forced the governments all over the world to alter the laws in the best interest of the business and to make sure that the time management is done at the year end when the businesses are also very much busy in financial audits. Online Tax services have therefore gained importance with the passage of time making sure that the best hands in the business are provided to the entities that are working all over the globe. Following are some of the features that a business should consider while hiring Online Tax services:

1. The services should be certified
It is one of the most important steps that have to be considered before making sure that the Online Tax services hired are the best of all times. It is also to be noted that the services that are being hired are the ones that have multiple certifications that are approved by the government to make sure that the services are the best ones and also backed by the government’s effectiveness in this regard. However it should also be noted that all tax professionals who are certified are not experts so business should also make sure that the past experience of the tax professional is also considered.

2. Past reviews
Before hiring the Online Tax services it is advised to make sure that the past reviews which the customers have given to the service are also considered in this regard. This will make sure that the industry specific reviews are filtered to see if the company is doing exceptional work related to any industry. These past reviews will also make sure that the best is provided to the business within no time and the time management is done in the best possible manner to enhance the capabilities of the business.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 0 80 384 600 36,

If a person or the business entity wants to file the online tax returns then in this modern world of advanced science and technology it is very important to note that there are tens of thousands of companies that are catering the said service for almost all the countries of the world. It is also very important to note that the online tax service has gained significant importance in last few years and it is all due to the fact that the business can use the online tax service to ensure that they file the return themselves without any hassle or problem. Online tax service that a business use should also be chosen in a careful manner to ensure that the best is provided to the business within the timelines that have been mentioned by the business and it also ensures that the best outcome is there to support the basic business structure. On the other hand online tax service hired also ensures that the minimum errors are encountered which mostly result in re-filing of the taxes which is never considered to be a good thing. Online tax service also makes sure that the particular areas of the deductions are targeted so that the business gets the maximum advantage in this regard. Getting the online tax service should be embedded with several qualities and it is not possible to list all of them here in this small piece of writing. However below mentioned are some of them in this regard:

1. Progressive addition of features
The online tax service should make sure that the progressive features are included in each and every release of the software as tax system is something that changes rapidly each year due to the governmental policies in this regard. The progressive feature addition will also make sure that the best is always updated within time and the overall structure of the service remains in line with the requirements of the business as well as the government. These features add interactivity to the forms and make the software program user friendly. The security as well as the safety of the software program should also be considered in this regard to make sure that the returns store on the systems of the company remain secure and the security is never compromised.

2. Advanced calculations
The fabulous forms set also ensure that the complete calculations are done so that the business owners do not have to calculate the returns or any part of them manually. The feature of the advance calculations will make sure that the updated tax terms are also added in this regard to make sure that the outcome is genuine as well as accurate. Advanced calculations therefore make the software worth using and allows the users to get the results that are business oriented.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 0 80 384 600 36,

On average a tax preparer needs 13 to 15 hours making sure that the tax return is prepared checked and considered to be accurate. It is therefore time to review the best online tax service which is also known as tax return software programs so that the business enjoys the best services in relation to these software programs allowing its tax department to use the online tax service in the best possible manner. The fiscal years in almost all countries of the world differ and therefore it is very important to note that the online tax service that has been chosen in this regard should be such that it supports any cycle in the year getting the best outcome for the businesses and helping them to file returns in the best possible manner. In the wake of advancement in science and technology it is very important to note that the best tax service is the one that has been rated high and regarded as the best by most of the businesses. There are several advantages which not only help the business in relation to online tax services but also make sure that the best services are provided leading them to best results within no time. Following are some advantages of using o line tax service:

1. Time Saving
It is one of the best advantages that are associated with the online tax services and therefore it is also advised to use the automated services that are regarded to be the best. As mentioned earlier an average tax return filed manually will take almost 13 to 15 hours to make sure that the return is compiled in the best possible manner and it is a time which is drastically high and using the online tax service will make sure that the not only the time is reduced but the return that is compiled afterwards is accurate and the best to make sure that the business enjoys as much reductions in tax as possible.

2. Efficiency
It is also one of the features that make online tax service as one of the best. The online tax service ensures that the services are provided in the best possible manner and the efficiency factor is also preserved in a manner that makes this service as one of the most desired of all times.

3. Automation
It is another factor that makes the online tax services as one of the best to use and implement. The tax service makes sure that all the processes are completed automatically and the final return is calculated without any problem and issue. Once the data has been fed now it is the job of the online tax service to make sure that the results that are compiled are the ones that are regarded to be the best of all times. Automation of several processes that were done manually in the past makes this service as best of the best.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 0 80 384 600 36,

On average a tax preparer needs 13 to 15 hours making sure that the tax return is prepared checked and considered to be accurate. It is therefore time to review the best online tax service which is also known as tax return software programs so that the business enjoys the best services in relation to these software programs allowing its tax department to use the online tax service in the best possible manner. The fiscal years in almost all countries of the world differ and therefore it is very important to note that the online tax service that has been chosen in this regard should be such that it supports any cycle in the year getting the best outcome for the businesses and helping them to file returns in the best possible manner. In the wake of advancement in science and technology it is very important to note that the best tax service is the one that has been rated high and regarded as the best by most of the businesses. There are several advantages which not only help the business in relation to online tax services but also make sure that the best services are provided leading them to best results within no time. Following are some advantages of using o line tax service:

1. Time Saving
It is one of the best advantages that are associated with the online tax services and therefore it is also advised to use the automated services that are regarded to be the best. As mentioned earlier an average tax return filed manually will take almost 13 to 15 hours to make sure that the return is compiled in the best possible manner and it is a time which is drastically high and using the online tax service will make sure that the not only the time is reduced but the return that is compiled afterwards is accurate and the best to make sure that the business enjoys as much reductions in tax as possible.

2. Efficiency
It is also one of the features that make online tax service as one of the best. The online tax service ensures that the services are provided in the best possible manner and the efficiency factor is also preserved in a manner that makes this service as one of the most desired of all times.

3. Automation
It is another factor that makes the online tax services as one of the best to use and implement. The tax service makes sure that all the processes are completed automatically and the final return is calculated without any problem and issue. Once the data has been fed now it is the job of the online tax service to make sure that the results that are compiled are the ones that are regarded to be the best of all times. Automation of several processes that were done manually in the past makes this service as best of the best.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 0 80 384 600 36,

Filing a tax return is not an easy task to perform and according to several studies that have been conducted in this regard show that an average tax return filing takes at least 15 hours to get the things done in the right manner. Online tax service is the best source to make sure that the tax return filed is accurate and state of the art in this manner. Making the best use of the sources will also make sure that the online tax service becomes a phenomenon that is the best and provides the services in a manner that is accurate and state of the art in this regard. There are tens of thousands of software programs that claim to be the best when it comes to online tax service but the matter of fact is that there are very few programs that meet the needs and requirements of the business. It is also to be noted that the best is provided to the business only when there are certain characteristics present in the business tax software that the owners are getting to file the returns. These software programs are designed in a manner to make sure that they never remain industry specific and for the same reason they can be used in the best interest of the business regardless of their industry as well as the area of operation. Below mentioned are some of the characteristics in this regard:

1. Efficient
Online tax service software programs should be the one that are efficient and effective to resolve the issue of the business in relation to tax as well as makes sure that the financial forecasting is done in the best possible manner. Getting an efficient software program will also make sure that it remains the best partner of the business for a very long time ensuring that the cost is not only deducted but the owners will not have to look for another software of same kind. This efficiency will also make sure that these online tax service programs are used in the best possible manner in line with the industry.

2. Value
It is also one of the characteristics that the online tax service should be embedded with. Unlike the other software programs the business should make sure that anything of value is judged within the software program. It will also make sure that the best is provided to the business in this regard. If the business gets the best value in relation to online tax service then there is no reason that the business has to change the program time and again. Making the best use of such programs is only possible if the business has made sure that this factor is considered in a manner that is critical and in the best interest of the business.
www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 08038460036,

Filing a tax return is not an easy task to perform and according to several studies that have been conducted in this regard show that an average tax return filing takes at least 15 hours to get the things done in the right manner. Online tax service is the best source to make sure that the tax return filed is accurate and state of the art in this manner. Making the best use of the sources will also make sure that the online tax service becomes a phenomenon that is the best and provides the services in a manner that is accurate and state of the art in this regard. There are tens of thousands of software programs that claim to be the best when it comes to online tax service but the matter of fact is that there are very few programs that meet the needs and requirements of the business. It is also to be noted that the best is provided to the business only when there are certain characteristics present in the business tax software that the owners are getting to file the returns. These software programs are designed in a manner to make sure that they never remain industry specific and for the same reason they can be used in the best interest of the business regardless of their industry as well as the area of operation. Below mentioned are some of the characteristics in this regard:

1. Efficient
Online tax service software programs should be the one that are efficient and effective to resolve the issue of the business in relation to tax as well as makes sure that the financial forecasting is done in the best possible manner. Getting an efficient software program will also make sure that it remains the best partner of the business for a very long time ensuring that the cost is not only deducted but the owners will not have to look for another software of same kind. This efficiency will also make sure that these online tax service programs are used in the best possible manner in line with the industry.

2. Value
It is also one of the characteristics that the online tax service should be embedded with. Unlike the other software programs the business should make sure that anything of value is judged within the software program. It will also make sure that the best is provided to the business in this regard. If the business gets the best value in relation to online tax service then there is no reason that the business has to change the program time and again. Making the best use of such programs is only possible if the business has made sure that this factor is considered in a manner that is critical and in the best interest of the business.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 0 80 384 600 36,

Filing a tax return is not an easy task to perform and according to several studies that have been conducted in this regard show that an average tax return filing takes at least 15 hours to get the things done in the right manner. Online tax service is the best source to make sure that the tax return filed is accurate and state of the art in this manner. Making the best use of the sources will also make sure that the online tax service becomes a phenomenon that is the best and provides the services in a manner that is accurate and state of the art in this regard. There are tens of thousands of software programs that claim to be the best when it comes to online tax service but the matter of fact is that there are very few programs that meet the needs and requirements of the business. It is also to be noted that the best is provided to the business only when there are certain characteristics present in the business tax software that the owners are getting to file the returns. These software programs are designed in a manner to make sure that they never remain industry specific and for the same reason they can be used in the best interest of the business regardless of their industry as well as the area of operation. Below mentioned are some of the characteristics in this regard:

1. Efficient
Online tax service software programs should be the one that are efficient and effective to resolve the issue of the business in relation to tax as well as makes sure that the financial forecasting is done in the best possible manner. Getting an efficient software program will also make sure that it remains the best partner of the business for a very long time ensuring that the cost is not only deducted but the owners will not have to look for another software of same kind. This efficiency will also make sure that these online tax service programs are used in the best possible manner in line with the industry.

2. Value
It is also one of the characteristics that the online tax service should be embedded with. Unlike the other software programs the business should make sure that anything of value is judged within the software program. It will also make sure that the best is provided to the business in this regard. If the business gets the best value in relation to online tax service then there is no reason that the business has to change the program time and again. Making the best use of such programs is only possible if the business has made sure that this factor is considered in a manner that is critical and in the best interest of the business.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 0 80 384 600 36,

Online tax services are one of the best features that any organization can embed within its structure to make sure that the best is provided to the operations that are being carried out. In most of the countries of the world there are large organizations that normally hire the online tax services to ensure that they have the best deals as well as the overall issue of deductions is resolved as soon as possible. However the idea of online tax services is not just confined to large corporations and it is also to be noted that the small businesses and the entrepreneurs can also take advantage of the service. The requirements may vary but it is very important to note that the online tax services are one of the best resources to make sure that the financial forecasting of the organizations working in Nigeria is done in line with the government requirements and taking into account the overall structure that has been built when it comes to taxation services according to which the company has been working. To make the idea more enchanting the online tax services that are hired should make sure that the technological advancements are considered every time they have launched a particular update or new product. Online tax services should be embedded with security and safety features to make sure that the data of the customers remain safe and secure all the time. In order to get the best results the organization of all genres should make sure that following features are embedded when hiring online tax services:

1. Knowledge of the field
It is very important to note that the organizations should only hire those practitioners or the tax agencies that have significant knowledge of the field of tax. This knowledge should be related to governmental changes as well as the organizational strategies that are industry specific. This factor will also make sure that the tax related services provided are top notch and state of the art when it comes to e-submission as well as other online services that have been approved by the government to make sure that the tax submission is facilitated.

2. Accuracy
This is the one accurate result of the tax calculation of the individual or the organization. The factor of accuracy will also make sure that the best is provided to the business within the timelines that have been defined by the government so that the return filed is also accurate. If the tax organization can take up this issue in accordance with the laws and regulations of the country then it should be hired immediately to ensure that a good and long term relationship is fostered that ensures healthy growth for both the partners in the best possible way so that the organization does not have to look for other services in this regard.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 0 80 384 600 36,

Income tax services are one of the most important aspects of the business that should be considered very carefully as the idea is related to government interference in the business. Income tax services hired by the business should be a combination of efficiency and effectiveness due to the fact that the idea is not simple at all and it should be handled with great care and with the help of expert hands to make sure that the best outcome is always provided to the business. If the business is small and so are the tax returns then it is not feasible to hire Income tax services as they might be a burden of expense for the business. If the business owner of a small business is also a tax expert then again the said services are not required as this can be done by the owner himself. But not all the business owner never belong to the same class hence the Income tax services are also required to make sure the business enjoys the best deductions as well as the related waivers in this regard. Now the question arises that how can a business find the best Income tax services so that the issue regarding the tax filing never arises. Following are some of the main methods to get the best services in this regard to make sure that the business remains at the top:

1. Business networks
It is to be noted that the business always establishes strong referrals as well as networks to make sure that the industry specific information is shared in the best possible manner. These networks can be a helping hand in this regard and for the same reason it is also to be noted that these networks and referrals will provide the best possible information to the business when it comes to Income tax services and also the ones that are industry specific to make sure that the owners get the services in line with their requirements.

2. Searching for compatibility
The Income tax services that are hired should be the one that are industry specific to make sure that the services acquired are the ones that are compatible with the business. If this is done according to the standards of the industry the n calculating and getting the tax deductions is not a big deal at all. Compatibility should also be considered to make sure that if an individual is being hired he is compatible with the environment of the business. Failing to comply with this may result in fatalities that a business would never want to have when it comes to income tax filing. This compatibility is also considered when it comes to charges as well as the contact information once the return has been filed.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 0 80 384 600 36,

There are several income tax questions that a user needs to answer in relation to the returns that are filed with the government. The income tax returns are always filed according to the questions and answers that lead the government towards the fact that the tax calculation is done in a straight forward manner without concealing any information whatsoever. These income tax questions are of vital importance as they make the authorities aware that the tax return calculated by the person through any means is accurate and exact. To make the idea more appealing the Nigerian government has categorized the income tax payers into several categories to make sure that the best is provided in terms of information when it comes to income tax questions and the related filing of the tax. Based on the conditions that are set by the Nigerian government it is very important to note that the categories in this regard are two major ones and they are classified as Self Employed which means the businessmen and the individuals under which all the people other than businessmen fall. There are tens of thousands of income tax services working in the country which make sure that the income tax questions which are asked by the government as per the requirements are correctly answered so that the business or individual is never liable for tax evasion.

These income tax questions also make sure that the stats are developed by the government and the tax policies are implemented in the best possible manner. The user is therefore required to answer all these questions correctly and as per the instructions that are provided by the government so that not only the income tax return is accepted but the user also submits it within time to make sure that the late fees are never charged. The income tax questions are also asked as per the business structure and the sole proprietorship has to answer the questions that are related to their structure and same rule applies to the company as well. When it comes to large organizations the income tax questions are mostly related to the business structure, excise duties, income tax reporting systems, export charge, payroll systems and the deductions that the business has enjoyed in the past. The income tax companies that are working within the country also make sure that the related topics are always covered and the user gets the idea about the topic as well so that the related questions are answered in a well defined and straightforward manner. It is therefore advised to all income tax payers of any class and kind to go through the return forms that they have to make sure that the important income tax questions are answered as per the will and discretion of the government.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 0 80 384 600 36,

Since its launch the Nigerian Inland Revenue System has made sure that the income tax questions are not only made easy but the related processes are also made trouble-free. However is it also to be noted that in July 2014 a very important decision has been taken in this regard which has been imposed on all the nonresident companies that are working in the country and according to this amendment not only the income tax questions have been updated but now these companies also need to make sure that audited financial statements are also presented with the income tax returns and it has been made effective to make sure that the tax evasion issues are curbed in full. If the company has submitted the tax returns without the proper documentation attached then it is very important to note that the all such returns should be filed with updated income tax questions templates as well as the related statements that have been submitted must also be resubmitted to make sure that the return filed is exactly in line with the requirements of the Nigerian government.

It has also been mentioned by the FIRS that in certain case where there is no need of resubmitting the documents as well as the income tax questions. But in order to do that the FIRS will directly contact with the relevant company and if has not been done then all the nonresident companies need to make sure that the best is provided to the Nigerian government to make sure that they are never audited by the FIRS directly which most of the companies avoid and does not want to happen. It has also been made clear by the FIRS that the taxpayers that are affected by this decision must take effective steps to make sure that the issue is resolved for them and they get their tax returns and related income tax questions filed in time.

FIRS has also made it clear that as there are no branch profits tax in Nigeria so all the nonresident companies that are operating with their branches in Nigeria should also file the tax questions that are related to their branches as separate entity and if it is not done then the companies will be penalized accordingly. It has also been mentioned by FIURS that if the company for any reason is not able to submit the revise income tax questions as well as the audited statements then an authentic statement showing the profit that a company has earned in this regard should be attached with the income tax return files. All these changes that have been made derived their roots from the section 55 of the CITA Act according to which a taxpayer ensures that the returns are filed based on actual statements. Formerly this was just restricted to Nigerian companies but the scenario has been changed since the tax evasion issues reported to the Nigerian Department of Commerce.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 0 80 384 600 36,

Income tax in Nigeria is a relatively broad term and it includes several types of incomes taxes that have been imposed on the individuals as well as the companies that are working in Nigeria. Following are some of the mist important income tax terms that are used when it comes to Nigeria:
a. Rental Income tax
b. Taxation of Expats
c. Personal income tax

Rental income tax
Rental income tax in Nigeria is calculated annually according to the income that has been generated from apartment, property or land within the country. Following are most important assumptions that are made by the government while calculating taxes in this regard:
1. Gross rental income should be $1500 per month
2. The property should be directly or jointly owned by husband and wife
3. Both husband and wife are non residents in Nigeria and most importantly foreigners
4. No other local income set up has been established by them in this regard
5. There is no loan or mortgage taken for the purchase of the property rented.
6. In Nigeria the value of the house or the place rented is calculated based on assumptions as there are no stats of house pricing published by the government of Nigeria. General economic stats are however available with the Central Bank of Nigeria.

Taxation of Expats
Income tax in Nigeria is also collected from the people who are non residents and are earning their livelihood within the country. In the recent years all the advanced countries of the world have their focus on Africa for business expansion and establishment of new facilities. In this regard the Nigerian economy is one of the main factors that are considered by large corporate organizations and it is all due to the fact that the country now has a stable political structure as well as immense population that has been estimated over 165 M. In relation to taxation of expats there are no rules and regulations clearly defined by the government instead the income tax structure with respect to Nigerian personal income tax is applied to all expats living in the country. It is however to be noted that with the increase in the number of expats the government is now taking steps to set up an act or legislation which is yet to be announced in this regard.

Personal Income tax
Personal income tax in Nigeria is calculated at a rate of 24%. It is solely related to the individuals who are working within the country. It is also to be noted that under the personal income tax in Nigeria the sources of income charged are labor, pension, interest and dividends. The benchmark that has been set by the taxation authorities is also known as Top Marginal Tax Rates. The government is taking serious measures to ensure that PITA or Personal Income Tax Act is enforced due to the fact that it is one of the major sources of government’s income.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 08038460036,

Nigeria has enforced double tax treaties with several countries of the world including Belgium, Canada, China and Pakistan. All the foreign companies that are working within the country also enjoy deduction in the income tax on the foreign profits that they have made. It is also to be noted that Nigeria is a member of 6 multilateral treaties providing waiver on tax filing to different countries the companies of which operate within Nigeria. All the commonwealth related companies that are operating within the country also enjoy a free income tax filing as well as 50% tax exemption provided the other country has also implemented the similar tax exemptions within their country.
Gas utilization Incentives
All the companies that are involved in the Gas utilization operations enjoy following incentives when it comes to income tax rates as well as filing:
1. Free income tax filing as well as 35% incentive on investment. Alternatively the company can also enjoy a tax free period of 3 years which can be renewed to another 2 years.
2. If the company has adopted the tax free option then an additional allowance of 15% is also granted to them.
3. Capital allowance acceleration is also provided after the tax free period finishes.
4. If the company fulfills certain conditions then a tax free dividend can also be enjoyed within the tax free period.
Petroleum profit tax incentives
1. The company that is indulged within the petroleum operations can file a free tax return if it has been filed within two months as soon as the fiscal year changes.
2. The actual tax return can also be free if it has been filed within 5 months i.e. not later than 31st May.
3. The petroleum investment allowance is also granted to the companies that work in the joint venture or JV.
4. All the onshore operations are subjected to 5% allowance when it comes to tax filing.
5. Beyond 100M depth of water the allowance that a company can enjoy is 10% on the total income generated from such operation
6. Beyond 200M eater depth the allowance to all such companies provided by the government is 20%.
In addition to petroleum allowance the government also makes sure that the annual allowance is granted to the companies in this regard. With respect to depreciation the allowance that is provided is 20% for the first 4 years including the free income tax filing.

Graduated free income tax filing has also been introduced by the government to make sure that the production is encourages within the country and this applies to all the companies irrespective of their operational areas The Nigerian government wants to make sure that the free income tax filing is provided to all the companies that are working as per the rules and regulations that have been defined by the authorities.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 0 80 384 600 36,

There are many agencies and income tax filing companies that are working within the Nigerian economy to make sure that the process of filing the tax is easy and simple. To get the best within the timelines set by the government the individuals as well as companies should know the process that is to be followed when they file income tax. The individuals as well as the companies make sure that the idea of file income tax is implemented as soon as the government declares the deadline for filing the income tax and it is all due to the fact that the late submissions are penalized by the government and the person also gets into hassle of filing the tax in hurry which makes the return wrong most of the time. Before the file income tax idea is worked upon the user also needs to know the business or the job they are working on so that the deductions are enjoyed. The tax payer needs to gather all the necessary information in this regard so that the related tax clauses become clear and the user can also follow them in a perfect manner. The user also needs to change the tax information or the direct deposit information if the need arises and it should be done before implementing the file income tax idea.

Gone are the days when the file income tax idea was implemented with the help of paper and pen so as a next step the user needs to make sure that the proper income tax return filing software is installed onto the machine so that the idea of file income tax becomes even easier. It is the most important step in relation to the income tax filing and the user should make sure that the best software is installed in this regard so that the process never becomes complex and the user also gets the best results. These software programs are specifically designed to make sure that the user never faces the hassle of late submissions and the time is also saved while filing the income tax returns.

These software programs also make sure that the best is provided to the user in terms of safety and security of the data and the personal information and if the user decides to file income tax online then this software program helps them out in this regard by providing maximum safety and security. Most of the software development companies in this regard have embedded SSL certificates that take care of the environment while the data is being transferred to the income tax department server. The unauthorized access has not only been limited but the companies are also making sure that the idea becomes even enchanting as the more security features are being added to the existing software programs working in this regard.

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To file income tax in Nigeria has been made very easy by the government and for the same reason it is also to be noted that in the recent years the economy has seen an increase in the income tax earnings of the government. Formerly the file income tax laws were not strict and the entities were taking advantage to avoid tax in this regard. To file income tax there are several precautions that the entities need to practice to make sure that the tax is filed in line with the requirements of the government of Nigeria. To make the process easier for the tax payers the government has also directed several national as well as private banks to make sure that the entities that come to file income tax are treated in the best possible manner. To understand the file income tax idea following are some of the most important entities that are to be considered in this regard:

1. Company Tax
Each and every company beside gas and petroleum sector needs to make sure that the tax return is filed within the proper time that has been designated by the government each year. Companies need to make sure that 30% of total profit is paid to the government in terms of taxation and it is also to be noted that every company is also liable to pay 2% assessable tax to the government which is termed as educational tax. The fiscal year in Nigeria is from 1st January to 31st December but the company can file the tax when its own accounting year ends. The period shall not exceed 6 months from the end date of the accounting year.

2. Petroleum sector
The petroleum sector needs to make sure that the 30% of total income is paid as tax when it comes to downstream operations. It is also to be noted that the petroleum sector needs to make sure that to file income tax returns the US dollars are used as currency. The company filing the petroleum tax needs to ensure that the return in filed within 2 months according to the accounting year the company follows. It is also to be noted that the tax of these companies is payable in 12 monthly installments if they are not in a position to pay the tax immediately.

3. Capital gains tax
Capital gains arising from the asset disposal are taxed at the rate of 10%. The capital gain tax is also never charged if the asset is disposed off and the new one of similar genre is purchased instead. The value of the new asset is then determined and the tax is charged accordingly to make sure that the government records remain up to the mark. Capital losses are also not charged against normal trading income. In most of the
cases it is also to be noted that to charge the capital gain tax inflation is never recommended.

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Companies Income Tax Act in Nigeria is collected from both Nigerian as well as foreign companies. The rates are however different for both entities. Nigerian companies needs to pay tax based on their worldwide income whereas the foreign companies need to pay tax on their profits that are being made as a result of their business activities. The corporate tax rate is 30% in Nigeria which has been same after the 2011 amendment as well. Company income tax is one of the most important sources of revenue collection for the Government of Nigeria. In the country the tax charging is governed by the CITA or the Companies Income Tax Act 1990 which amended in 2004.
Chargeable profits
It is one of the most important provisions of the Companies Income Tax Act. According to this following are some of the ways of earnings of the companies that are charged with tax:
1. All trade and business related activities without considering the time for which they have been carried are taxable.
2. Rent and all the premiums that are arising from the company operations are also charged with tax when it comes to Companies Income Tax. In this regard the period of rent is not considered by the government.
3. The dividends that are distributed to the share holders of public limited companies are also taxable. This is the provision 1C of the Nigerian Companies Income Tax Act where it has also been mentioned that all interests, royalties and discounts are also charged with tax.
4. The source of annual profit that does not fall within the categories mentioned above is also charged with tax.
5. Any amount the company receives in terms of profits according to the provisions that are mentioned within the income tax act is also taxable.
6. All short term fund raising acts performed by the company is also considered to be taxable under this act. It includes Federal Government security, treasury bonds, saving and debenture certificates are also charged under this act.

Where the tax has to be paid
1. All the Nigerian based companies need to make sure that the tax is paid at the source of designated bank. Once the payment has been received an e-ticket is issued which the company needs to present at the tax office within the jurisdiction of which the company office lies. The e-ticket is always issued once the payment has been captured by the bank system.
2. All the foreign companies need to make sure that the tax is deducted at source to the designated banks in this regard.
3. You can also make use of Nigeria Federal government tax online payment It serves as a means of reducing time and cost of compliance for the taxpayers and reducing interface between the taxpayers and tax authorities. It provides added convenience for taxpayers who will now sit at the comfort of their homes and offices and upload their tax returns on the e-Tax Pay Solution platform,” he further explained.

All Nigerian companies submit annual tax returns in relation to the Companies Income Tax Act whereas the foreign companies need to make sure that the withholding tax is deducted from the profits they make within Nigeria. Once the returns are filed by these companies it becomes their tax.

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In Nigeria the audit reports are standardized and they are governed by the rules and regulations that have been defined by the FRC or the Financial Reporting Council of Nigeria. This institution was established in the year 2011 and since then it has made sure that all the financial documentation of companies working in Nigeria is standardized which also includes the audit reports. Federal Ministry of Trade and development is the body under whose command and control this institution works to make sure that the companies abide by the rules and regulations of the government while compiling their financial documents. There are certain objectives of the FRC according to which not only it works but also makes sure that these objectives are fulfilled all the times especially when it comes to the companies audit reports. Some of them are listed below:

a. While compiling the audit reports the interests of the investors as well as stakeholders should be protected.
b. Companies requiring financial assistance are not only guided but it is also made sure that the best interest of the business is protected all the time.
c. FRC ensures that the audit reports published make sure that the good corporate governance is being preserved all the times when it comes to public as well as private sectors.
d. The accuracy of the financial reporting is also ensured by the FRC and it also includes the internal as well as external audit reports.
e. The financial reporting done by the company is credible and audit reports being the most important part is also emphasized.
f. The quality of audit as well as the related audit reports must also be increased in this regard.

Since inception FRC has made sure that the best practices related to financial reporting are preserved. The resident as well as the nonresident companies makes sure that they always consult FRC before any type of decision related to financial reporting is undertaken or implemented. The expert advice of FRC I like a boon to the companies which makes sure that the best interest of financial reporting is not only maintained with audit reports but the interest of the company is also preserved. According to the scope of the work there are several advantages of FRC out of which some are listed below:

a. FRC ensures that the accounting practices of public as well as private sector is in line with the principles defined and therefore it reduces the volatility of the audit reports and the related errors.
b. It is the professionalism of the FRC that always reduces the risk of financial market crises and therefore negative economic growth is also reduced to a great extend.
c. Easy access of credit is made possible by FRC and it is done by making sure that the audit reports and the related accounting practices are made safe, secure and transparent.
d. Last but not the least the FRC also makes sure that new job opportunities are created within the
economy.
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Businesses spent enormous time in compiling their financial records and information in an accurate manner. However it all goes in vain if the correct audit reports are not presented in line with the general accounting requirements of the industry. The audit reports are considered to be the primary tool which ensures that the best has been presented to the general public so that the future of the company is decided in the best possible manner. The audit reports make sure that the overall financial management as well as the financial statements of the company is thoroughly investigated to make sure that the errors as well as manipulations are detected and removed in time to foster the client company and investor company relationship. In whole the audit reports are the best documents that present the financial health of the company to the people who are willing to do business with the organization. There are tens of thousands of firms that are working within this area and making sure that the best services are provided to the businesses when it comes to audit reports presentation but careful approach should always be practiced by the organizations to make sure that the best company or firm is chosen in this regard. There are several features of the audit reports that make it a legal document and also make sure that the company is highlighted to investors as well as the potential clients. Following are some of the most important features or the aspects of the audit reports:

1. Signature
The audit reports are not considered to be complete without the sign of the appropriate authority. It means that the auditor, firm or both should sign it to make sure that the report presented is authentic and in line with the requirements of the company as well as the accounting standards. The signature also ensures that the audit reports are authentic and the related statements or the company accounts have been checked thoroughly and the details have been included for the general public and the stakeholders to review. The most appropriate method in this regard is to make sure that the audit report has been duly signed in name of accounting firm and the auditor.

2. Identification
The audit report that has been presented to should identify the areas of the financial records that have been checked by the auditor. It should mention the financial statements that have been thoroughly audited by the auditor in this regard to make sure that audit report is genuine and authentic. The identification should also mention the auditing standards that have been met in this regard or used to get to the desired outcome. The report should include the name of the entity as well as the related procedures that have been adopted as per the organizational structure.

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Accounting and finance are two of the most important services that a business should focus on to ensure that smooth running of the operations. Accounting services for small business depends upon number of factors for its successful execution and the owners should keep in mind that a good accountant is a key to success and makes it possible for the company to skyrocket its success within no time. Accounting services for small business however itself is not a very complex process as the small business finances are usually not that complex and multifarious. It never means that care should not be taken while maintaining as they are also audited by the external as well as the internal auditors so that the financial health of the business can be depicted and the stake holders can be made aware of the future of the business. It is therefore necessary for the small business owners to know the advantages that are associated with the outsourcing the accounting services for small business so that it can be implemented with full force and in the best interest of the business. In order to get an in depth knowledge following are some of the advantages of good accounting services for small business and they will also make sure that the business never gets into hassle of substandard services which is obviously a waste of time:
1. Simplification
Outsourcing accounting services for small business is something that allows the owners to run the business more effectively. Several advantages are associated with the simplification of accounting processes such as well managed information within a small period of time leading to more services and eventually more revenue. Meeting regulatory requirements is also another advantage that is associated with this idea and the idea of simplification also allows the business to close the financial year in a swift manner that leads to awesome outcomes when it comes to auditing as well as checking of financial records.
2. Greater exposure and experience
Increasing scope of accounting services for small business requires a business to outsource these to those companies that are known experts of the field. Normally the small business never take good care of their financial records with the technologies as well as the methodologies that they have built in house and the outsourcing companies are also well aware of the fact. Now there is a race for the best and all outsourcing businesses around the world are enhancing their expertise in the field to make sure that they become the first choice of any business. On the other hand the outsourcers are also ensuring that those experts are hired that have firsthand knowledge as well as experience of different accounting software programs and their functionalities.

www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 0 80 384 600 36,

Accounting services for small business should be carried out by a pro to make sure that the results are according to the requirements of the business and are also carried out in a manner that suits the operational strategies of the company. While running a small business should make sure that the best is provided to the business in terms of accounting and it can only be done to make sure that all the expenses are recorded as soon as they are made. If this is not the case then it the company that would sink before it even sets its feet in the market. In order to make sure that the company is maintained in the best manner it is advised to make sure that the following simple strategies are implemented before launching a formal accounting plan for the business:

1. Proper usage of the sources
Accounting services for small business requires the owners to make sure that the proper usage of the sources is done in the best possible manner. For instance the borrowed funds should be separated from the accounts receivables. To achieve the results it is to be noted that the accounting software is used which has the same terminology. A business should never lose sight in this regard as it is one of the most important things to consider that what belongs to the business and what is to be paid back.

2. Managing daily expenses
Accounting services for small business requires a business to make sure that the daily expenses are calculated on daily basis and they are never delayed i.e. for a week or two. It will make sure that that the business calculates the expenses that will incur in coming days. Alternatively expenses can also be calculated on weekly basis which makes the business perspective clear regarding the type of expenses incurred in a particular week.

3. Exact calculations
It is also to be noted that if the best possible accounting system is established for the business then the calculations become easy including the minimum monthly profit that a business will make in any particular period of time. If the accounting services for small business are not in line with the requirements of the business then it is almost impossible to calculate the numbers that support the business profit and the earnings as well. Well defined business systems in this regard will make sure that the calculations are accurate and the business gets the best results for fiscal year when it comes to book keeping.

4. Cost effectiveness
It is the best phenomenon which makes sure that the best results are obtained and ways are devised to explore similar opportunities. Applying this idea in business requires the owner to make sure that DIY accounting techniques are established to get the results in a fast manner. Accounting services for small business will also enlighten the users if they are targeted towards this goal.

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Small Business Accounting – Outsourcing in Nigeria

It is one of the most awesome facts of all times that small businesses work as a backbone of any country and for the same reason the Nigerian government also makes sure that their growth as well as expansion is encouraged in every possible manner. Accounting services for small business is definitely an idea that has gained widespread popularity within the business community that has been working all over the world. It is for the same reason that the related services are not only cheap but there are tens of thousands of companies working online and providing such services to the businesses worldwide. In Nigeria the small business is something that has been regarded by the government in every act or law that has been passed in this regard to make sure that these businesses are not only expanded but are also taken care of in a manner that suits them and makes sure that the progress is rapid and faster than ever. In the wake of new laws and regulations that have been passed in this regard before hiring the accounting services for small business it is advised to ensure that certain elements are seen for as they will make sure that the best is provided to the business and the related ideas are also channelized so that the processes that are developed meets the requirements of the business and makes sure that the element of profit is maximized. Below mentioned are such ideas that will help the small business owners in analyzing the accounting services for small business:

1. Location
The location of the accounting services for small business should be considered before the service is hired. This idea becomes increasingly important if the business is outsourcing its entire accounting services. It will also make sure that the best is provided to the business and it remains in touch with the company all the time. On the other hand the location factor will also make sure that the company executives or the related department is call anytime to discuss the issues and the problems that are being faced by the organization. Location factor should therefore be considered in this regard and the company should make sure that the services are acquired from the entity located close.

2. Getting the best one
Every small business wants to get the best services when it comes to accounting and for the same reason it is advised to contact the government authorities to ensure that the accounting services for small business are hired in line with their directions. The business should also make sure that the already established resources are also tapped to get recommendations so that the best is the one that it gets. Contacting the relevant people will also help to get the idea on the right line and to make sure that awful agents and services are avoided.
Accounting and finance are two of the most important services that a business should focus on to ensure that smooth running of the operations. Accounting services for small business depends upon number of factors for its successful execution and the owners should keep in mind that a good accountant is a key to success and makes it possible for the company to skyrocket its success within no time. Accounting services for small business however itself is not a very complex process as the small business finances are usually not that complex and multifarious. It never means that care should not be taken while maintaining as they are also audited by the external as well as the internal auditors so that the financial health of the business can be depicted and the stake holders can be made aware of the future of the business. It is therefore necessary for the small business owners to know the advantages that are associated with the outsourcing the accounting services for small business so that it can be implemented with full force and in the best interest of the business. In order to get an in depth knowledge following are some of the advantages of good accounting services for small business and they will also make sure that the business never gets into hassle of substandard services which is obviously a waste of time:
3. Simplification
Outsourcing accounting services for small business is something that allows the owners to run the business more effectively. Several advantages are associated with the simplification of accounting processes such as well managed information within a small period of time leading to more services and eventually more revenue. Meeting regulatory requirements is also another advantage that is associated with this idea and the idea of simplification also allows the business to close the financial year in a swift manner that leads to awesome outcomes when it comes to auditing as well as checking of financial records.
4. Greater exposure and experience
Increasing scope of accounting services for small business requires a business to outsource these to those companies that are known experts of the field. Normally the small business never take good care of their financial records with the technologies as well as the methodologies that they have built in house and the outsourcing companies are also well aware of the fact. Now there is a race for the best and all outsourcing businesses around the world are enhancing their expertise in the field to make sure that they become the first choice of any business. On the other hand the outsourcers are also ensuring that those experts are hired that have firsthand knowledge as well as experience of different accounting software programs and their functionalities.


www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 08038460036,

Accounting service for small business is a process that requires extreme care and professionalism to make sure that the business expectations are met. Often the people or firms providing such services make sure that the command and control remains in their own hands but on the other hand they report regularly to the parent organization to make sure that the best is provided within time and in line with the industrial as well as the organizational requirements. Accounting service for small business is therefore a phenomenon that should be handled with care and perfection allowing the organizations to make sure that the core business is never ever effected at any cost. Accounting service for small business should also have some regular services that should be provided as a bonus so that not only the client organization remains satisfied but the new clients are also attracted. It is an idea that transforms the smaller businesses in larger ones if the care has been practiced to manage the accounts in a manner that abides the laws of the country in which the business is being carried out. Following are some of the features that a business should look for before hiring the accounting service for small business to ensure that the best has been done within the timelines and the year end becomes easy for both the internal as well as external audit:

1. Good record keeping
It is one of the basic features of accounting service for small business that make sure that the financial records are kept under strict consideration while running the affairs of the business. Though the financial management is not a core business operation but all other important business proceedings strongly depend upon this factor as the cash is the driving force of any business. Good record keeping includes deploying a system that is either manual or electronic to make sure that transactions are recorded as soon as the business proceeds with a financial change in its status and also these recordings are accurate. Monthly income and expense statement should also be created to make sure that the best results are gathered at the year end with accuracy and precision. It also requires a business to keep the financial records in order when it comes to hard copies.

2. Basic accounting methodologies
The accounting service for small business should make sure that the basic accounting methodologies are not only implemented but is also followed in a manner that makes it possible for the business to record and compile the events as soon as they occur. This leads to a financial statement and resolution of the recorded issues in the accounts. If the basic accounting methodologies are implemented in their true meaning then it is very important to note that the accounting errors will not only be detected but the overall financial management of the business will also become effective with the passage of time.

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Accounting for small business points to note


The idea of accounting for small business is a complex one as the related department as well as the overall structure of the company should be in line with the requirements of the company to make sure that the outcome is the one which makes sure that the business financial forecasts are the best ones. On the other hand the company that has been hired to carry out accounting for small business should also be the one that understands the requirements that are industry related and carry out the work for the organization that is considered to be the best. The client organization also ensures that the work that has been carried out is outsourced to the company that has significant experience to carry out similar tasks as well. There are certain characteristics that are related to the organizational behavior as well as structure which should be looked for once the accounting for small business has to be outsourced in this regard. As mentioned earlier the phenomenon related to accounting for small business is not easy and therefore it is should be carried out in an extreme professional manner making sure that the following characteristics are also observed in this regard so that maximum advantage is taken by the company that is spending money in this regard to make sure that at the year end the audit is made simpler and a straightforward manner:


Accounting for small business in Nigeria is not an easy task to perform as it makes sure that the best is provided to the business owners and at the same time it also ensures that the best services are also provided to the business owners. In Nigeria most of the businesses take very good care of their finances and the tax returns due to the fact that they maintain a state of the art team that makes sure that accounting for small business is not a big deal at all. In order to ensure that the best services are enjoyed by all the businesses when it comes to accounting for small business it is advised to follow the below mentioned steps so that the process not only remains safe and secure but also gives the best to its owners:

1. Keeping things separate
It is the first and foremost thing that a business needs to follow to make sure that the things never get complex in this regard. In simple words it is to be noted that all the expenses that are not related to the business should be recorded separately to ensure that the main accounting for small business is never disturbed. These expenses include paying school fees or a personal expense. To keep the accounting for small business in order it is advised to always record them as a transaction so that the records are kept and maintained in the best possible manner.

2. Calling the best talent
As explained earlier accounting for small business is not an easy task as most of the business owners think. Highly experienced talent is therefore required to ensure that the recording and book keeping is done in a manner which is exactly on line with the requirements of the business. Accountants are the most trusted employees of the small businesses hence they should be the ones that are experts of the field so that unexpected never occurs and the transactions are recorded accordingly.

3. Software related help
In the past when the software programs for the accounting firms or employees were not developed there was a significant chance of human error leading to bad book keeping. Accounting for small business therefore requires the best possible way to make sure that human error is almost eliminated. This can be done in the best manner by making sure that the automated software programs are used for the business. These software programs also ensure that the business and personal expenses are kept as separate as possible and it can also handle all the backend crossover expenses as well.

4. Daily check
All the small business owners should make sure that the finances are checked every week for at least 30 minutes and during this time noting else should be prioritized. All the important income and cash flow statements should be checked which ensures that the accounting for small business becomes an idea that helps the business instead of becoming burden.


5. Reporting
The reporting is one of the most basic features of accounting for small business and the organization that has been hired to do the work should make sure that the client is always kept up to date when it comes to daily progress and the related ideas about which the client should get themselves aware. Making the idea of accounting for small business the best one is only possible if the reporting is done within time and in line with the requirements of the organization so that the element of trust remains there and the relationship becomes stronger than ever. The element of reporting is of great help when it comes to quality work within the given timelines.

6. Accountability
The organization carrying out accounting for small business should keep itself ready for the element of accountability and this should be the first and foremost feature of the contract that is signed between the two organizations who start to work in this regard. This will also ensure that the outsourced work meets the quality and the end product is one that is desired by the organization that is spending money in this regard. Once it has been done them quality as well as on time service is no match at all. This element of accountability will also ensure that systematic procedures are introduced to get the work done in quicker, faster and effective manner.


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