₦airaland Forum

I’m a business man.
I buy and sell, more like I’m into commerce.
All I know is there’s increment in tax for everyone.

I’ve done my research, nothing still. Prices of goods are going up due to this tax increment, so indirectly it affects me. but I’m still to understand how this tax system affects traders directly.

Do they tax our total bank transfers by a percentage or what? Cos from what I read online, it affects everybody.

Pls note I have no issues paying tax. I just need to understand how it works on all Nigerians. And I believe there are people who are as confused as I am

https://www.nairaland.com/8599887/2026-nigerian-tax-law#138148499

https://www.nairaland.com/8600826/nigerias-new-tax-laws-faqs#138164379

The topic has been discussed on several topics on here, the above are just a few I could find. You might still have to consult an accountant for more details pertaining to your business

First of all, there is tax increment. But NOT for everyone.

Secondly if you are running a business, you need to REGISTER a Private Limited Liability COMPANY.
NOT a Business Name.
A COMPANY.

That way, you'll be able to take advantage of the TAX EXEMPTION threshold available to Small Companies.

Small Company is if your business is doing #100M or LESS per annum in Total REVENUE with a Total Fixed Asset that is less than #250M.

Also, it's NOT a percentage of your bank transfers that's taken as tax. It's a percentage of PROFIT.

That means after you've deducted the COST OF GOODS sold and other BUSINESS EXPENSES, including Salary and Shop Rent.

And even after that, you may NOT need to pay taxes IF your revenue and assets qualify you as a SMALL COMPANY.

Understand that this EXEMPTION for small companies does NOT apply to Sole Proprietors and people who operate under JUST a business name WITHOUT a company registration.

Those ones will be taxed like a salary earner after deductions of relevant expenses.

Your best bet is still to consult an ACCOUNTANT.

They'll give you more clarifications.

Meantime, Google Nigerian Tax Act 2025, Nigerian Tax Administration Act 2025 and download the PDFs and read at your own pace.

You will NOT understand everything.
Don't sweat it.
Use AI to break it down.

AI will not always be accurate so take additional questions you might have with you to your meeting with the Accountant.

nnadychuks:
I’m a business man.
I buy and sell, more like I’m into commerce.
All I know is there’s increment in tax for everyone.

I’ve done my research, nothing still. Prices of goods are going up due to this tax increment, so indirectly it affects me. but I’m still to understand how this tax system affects traders directly.

Do they tax our total bank transfers by a percentage or what? Cos from what I read online, it affects everybody.

Pls note I have no issues paying tax. I just need to understand how it works on all Nigerians. And I believe there are people who are as confused as I am

Tinubu hates doing things straight, it is the same way Lagos is being run in most cases, from LASTMA to building of houses and approval, to road and traffic usage, they won't put signs anywhere, they will just jump out from somewhere and catch you to pay big fine.

So to be on the safe side, track and protect all your income and best get a lawyer to give you the best advise, Tinubu's style of governance is a very thin line between it and fraud, sometimes it is even pure fraud like the gazetted tax law itself.

Which taxes were increased? Una sabi lie ehn.

You are supposed to maintain adequate financial records

Sales amount minus expenses ( cost of goods, rents, interest on loans, transportation, feeding, clearing, staff etc)

Any profit after that will be subjected to income taxes ( if your company is not incorporated) or corporate taxes

lol. This is very common o. The Government needs to find a way to interpret and pass this message to the masses. A lot of people are still kept in the dark about this tax issue

Just pay your tithes and you'll be fine. Tax isn't necessary.

This I have seen.

No one does. Even the government does not understand it.

All they know is that they will take a cut off your capital and also personal money at the end of a cycle.

Go hire a Tax Consultant, Nigerians hates paying for professional services.

Medical issues...u ask Nairaland
Car issues... Nairaland
Tax.. Nairaland


Get a professional advice for once!..

ednut1:
Which taxes were increased? Una sabi lie ehn

Be deceiving yourself.

When u are blinded by tribal hate how would u know if taxes affect things?

My wife earns about 500k monthly last year her tax was 47k or there about now,it is about 67k. Same salary wey no increase yet her tax increased.

Make una continue dey support criminals...my only conviction is that,i cant be poor. My father has paid the price of poverty for me.

U can't tax those who are still suffering that is my position and it does not matter who is the leader.

Truth must always prevail.

Omo... some Nigerians think this tax issue is a joke

Taxes are actually not going up for everyone.

There is a lot to explain.

Your best bet is to get an accountant.

The government of propaganda. At the end of the day, all these taxes will be shared among themselves and the borrowing continues.

nnadychuks:
I’m a business man.
I buy and sell, more like I’m into commerce.
All I know is there’s increment in tax for everyone.

I’ve done my research, nothing still. Prices of goods are going up due to this tax increment, so indirectly it affects me. but I’m still to understand how this tax system affects traders directly.

Do they tax our total bank transfers by a percentage or what? Cos from what I read online, it affects everybody.

Pls note I have no issues paying tax. I just need to understand how it works on all Nigerians. And I believe there are people who are as confused as I am

So, u dont have issue paying tax that they have been looting for decades just as they loot ur natural resources.

Google Jude Bela on YouTube. You'll find a video where he broke it down.

Just get a tax auditor to be honest, makes your life easier.

There are some tax auditors out there who are specifically targeted towards small and medium sized businesses and their charges are reasonable

E no go better for Tinubu and his followers

This tax issue...

When the government is presenting their arguments, they point to Personal Income Tax and Company Income Tax and try to show you that it's a wonderful deal.

But like a sleight of hand, they are cooking a lot but they aren't showing you...

When a small company goes to file its tax returns, they will quickly notice that the Revenue Service is really after something else - VAT.

No business is exempt from remitting VAT monthly, and none is exempt from penalties for not remitting it monthly, small business or not.

Then will they realize that the VAT assessment and penalties were the target all along. And maybe the NRS would not bite immediately. But they would definitely, after the APC has muscled their way back into government in 2027.

In reaction to that, prices of goods and services will be adjusted to accommodate the VAT remittances. And guess who'll pay the extra amounts being funnelled back to government - everyone.

The same will go for witholding taxes from rent, leases etc.

Who gets richer - the politicians, and who gets poorer, the poor.

Will they use the extra revenue wisely? They will spend it just as they are spending the subsidy windfall today.

xquire:
Go hire a Tax Consultant, Nigerians hates paying for professional services.

Medical issues...u ask Nairaland
Car issues... Nairaland
Tax.. Nairaland


Get a professional advice for once!..

there are professional here on nairaland who are willing to answer those questions for free. that's one of the beauty of nairaland

Gather all ur business bills in one place.... know the total sum for each month..or days... After that ..... calculate in percentage 🙄.... After doing dat... Add the percentage to whatever u are selling out.... Once u do this tinubu nor concern u anymore....u can even add small percentage to it for emergency.... All of us go chop the break fast las las.☺️

You are not alone, a whole bunch of Nigerians don't understand it and it is a deliberate act by the government. They simply want to have a legal reason to forcefully take people's money.

Namaster:
First of all, there is tax increment. But NOT for everyone.

Secondly if you are running a business, you need to REGISTER a Private Limited Liability COMPANY.
NOT a Business Name.
A COMPANY.

That way, you'll be able to take advantage of the TAX EXEMPTION threshold available to Small Companies.

Small Company is if your business is doing #100M or LESS per annum in Total REVENUE with a Total Fixed Asset that is less than #250M.

Also, it's NOT a percentage of your bank transfers that's taken as tax. It's a percentage of PROFIT.

That means after you've deducted the COST OF GOODS sold and other BUSINESS EXPENSES, including Salary and Shop Rent.

And even after that, you may NOT need to pay taxes IF your revenue and assets qualify you as a SMALL COMPANY.

Understand that this EXEMPTION for small companies does NOT apply to Sole Proprietors and people who operate under JUST a business name WITHOUT a company registration.

Those ones will be taxed like a salary earner after deductions of relevant expenses.

Your best bet is still to consult an ACCOUNTANT.

They'll give you more clarifications.

Meantime, Google Nigerian Tax Act 2025, Nigerian Tax Administration Act 2025 and download the PDFs and read at your own pace.

You will NOT understand everything.
Don't sweat it.
Use AI to break it down.

AI will not always be accurate so take additional questions you might have with you to your meeting with the Accountant.

And how does the government know that which is my profit. That is a one million dollar question none of you have been able to answer

Not to worry,na this 2027. Oju gbogbo wa ma boo on top this tax issue

Shior

nnadychuks:
I’m a business man.
I buy and sell, more like I’m into commerce.
All I know is there’s increment in tax for everyone.

I’ve done my research, nothing still. Prices of goods are going up due to this tax increment, so indirectly it affects me. but I’m still to understand how this tax system affects traders directly.

Do they tax our total bank transfers by a percentage or what? Cos from what I read online, it affects everybody.

Pls note I have no issues paying tax. I just need to understand how it works on all Nigerians. And I believe there are people who are as confused as I am

Not all business owners are being taxed with the new tax reform.

In plain language, if your business makes an annual turnover of 100million and below then the new tax law doesn't concern you

ibechris:
My wife earns about 500k monthly last year her tax was 47k or there about now,it is about 67k. Same salary wey no increase yet her tax increased.

This is STRANGE.

At a salary of #500K, your wife falls squarely within the ranks of people who should see a REDUCTION in their tax liability.
Which should mean an INCREASE in their final take home.

You need to check AGAIN.

happney65:
And how does the government know that which is my profit. That is a one million dollar question none of you have been able to answer

That is why it is MANDATORY for every person to file a TAX RETURN.

It's a SELF-REPORTING system where you'll tell the government what percentage of the revenue is PROFIT and therefore subject to tax.

You are the ONE who'll tell the government your revenue and profit.

If they think you are lying based on the records available to them, they'll ask you to come and explain the discrepancies with EVIDENCE.

That's all.

ibechris:
Be deceiving yourself.

When u are blinded by tribal hate how would u know if taxes affect things?

My wife earns about 500k monthly last year her tax was 47k or there about now,it is about 67k. Same salary wey no increase yet her tax increased.

Make una continue dey support criminals...my only conviction is that,i cant be poor. My father has paid the price of poverty for me.

U can't tax those who are still suffering that is my position and it does not matter who is the leader.

Truth must always prevail.

everything must be tribal? Where have you seen me supporting Tinubu on this app? He was not paying taxes before and he made a bold claim that taxes have increased for everyone. Meanwhile in reality 97% of people on PAYE had reductions. Your wife na high earner even at that it should have reduced . Website below can be used to compare old and new rates

https://fiscalreforms.ng/index.php/pit-calculator/

Individual employees are also required to file returns that show sources of their incomes for the year ended.It's possible that the individual employees are having income sources other than the salary which needs to be declared in the individual returns.

For example, a company proves payment of tax by presenting its Tax Clearance Certificate (TCC).

As an individual, the only way to process a Tax Clearance Certificate is to declare your income in line with what your employer has reported through Form H1, which is filed by the employer at the end of January each year.

Therefore, to be able to prove tax compliance as an individual, you must file your individual tax returns, which are due on or before 31st March every year.


The government has nothing to lose if an individual refuses to file his returns.But when your vehicle has issue with task force and you are asked to show your TCC, its at this point individuals will realize the mistake they have been making by not filling their returns.

Everything you use Is being taxed, even if you buy food items or airtime. Their is a valued added tax on it

Don't ignorantly follow band wagon.
Get a tax consultant to take advantage of various provisions of the new tax act.
As much as there are benefits, there are stiffer prices to pay for ignorance

Your wife isn't telling you the entire truth sir, tax on 500k last year can never be 47k. I'm a tax consultant so I'm cock sure

ibechris:
Be deceiving yourself.

When u are blinded by tribal hate how would u know if taxes affect things?

My wife earns about 500k monthly last year her tax was 47k or there about now,it is about 67k. Same salary wey no increase yet her tax increased.

Make una continue dey support criminals...my only conviction is that,i cant be poor. My father has paid the price of poverty for me.

U can't tax those who are still suffering that is my position and it does not matter who is the leader.

Truth must always prevail.

ibechris:
Be deceiving yourself.

When u are blinded by tribal hate how would u know if taxes affect things?

My wife earns about 500k monthly last year her tax was 47k or there about now,it is about 67k. Same salary wey no increase yet her tax increased.

Make una continue dey support criminals...my only conviction is that,i cant be poor. My father has paid the price of poverty for me.

U can't tax those who are still suffering that is my position and it does not matter who is the leader.

Truth must always prevail.

For 500k salary range old 24% new 14.5%

Someone is battling to make profit after the overhead and salary and you want them to pay for the services of auditor or tax consultant. For what exactly?