₦airaland Forum

Having read hw some individuals got their selives into troble for nt paying tax, i'm move to ask these questions: 1. At what age is right age to pay tax.
2. What biz should one do before he/she pay tax.
3. Hw much that one will earn befor he/she pay tax.
4. Hw much is tax in Nigeria.
Pls. Any body with answer to these should help. Including the mods

Mrjo:
Having read hw some individuals got their selives into troble for nt paying tax, i'm move to ask these questions: 1. At what age is right age to pay tax.
2. What biz should one do before he/she pay tax.
3. Hw much that one will earn befor he/she pay tax.
4. Hw much is tax in Nigeria.
Pls. Any body with answer to these should help. Including the mods

Question 1: There is no right nor wrong age to pay tax. A two year old baby whose parent bought a property in is name and now went ahead to rent/lease out the house, if the profit (rent) received on that house goes into the account of the child, that profit (since it's owned by the kid) will be subjected to tax.
Likewise if a 99 year old man has a property he rented out and receives rent income on the property, he too will be subjected to tax based on the profit realized on the building.

Bottomline is, so far you make money/income/profit you should pay tax notwithstanding your age be it under 18 or over 60/70/80/90.

Question 2: So far you make money (profit) from any legitimate business whatsoever, you are required to pay tax.

Question 3: There is something called minimum tax. Anybody that makes less than N300,000 in a year will be subjected to 1% minimum tax. And if you earn above that, the maximum they can charge is 24%.

Question 4: We have different types of taxes e.g Personal income tax, Company income tax (30%), Capital Gains tax (10%), Value added tax, Education tax (2%), Petroleum Profits tax (85%).

Tax calculation is a seriously complicated exercise, I bet you can't do it yourself. You will need to secure the services of a tax practitioner or consultant who will guide you and explain how the Nigerian tax system works.

Additional info: So far you make money (profit/income on a legitimate business venture), you must pay tax. Income is classified into two (A.) Earned income e.g profit from business, or salary and wages you receive in the course of you being employed, pension (B.) Unearned income - this is income you made not as a result of the work you physically put in e.g rent income (from renting out your building), dividend ( from the shares of a company you bought), royalty, interest (money you kept in the bank and you were paid for saving it there), director's fee e.t.c

I repeat, tax calculation is a complicated matter which requires expertise advice by a professional.