TO AVOID LIRS WAHALA, 3 THINGS YOU SHOULD NOTE AND DO  

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  1. UNDERSTAND AND PLAN YOUR TAXES: As a business owner or Manager, you need to understand the basics and basis of taxation. The State Revenue Service majorly concerns itself with the following:

a. PAYE should be remitted on or before the 10th day of the month following the month in which salaries were paid.

Also, an Annual Developmental Levy of NGN 100 (One Hundred Naira) per Taxpayer applies.

b. DIRECT ASSESSMENT: Business owners who are not on salaries opt for Direct Assessment, it is similar to PAYE, only that it is paid annually on or before the 31st of March 2022. The calculator highlighted earlier can help calculate your Direct Assessment.

c. WITHHOLDING TAX: When individuals (including Business Name) are given contracts or jobs you are mandated to deduct between 5% – 10% (Depending on the nature of the transaction) as Withholding Tax from their submitted invoice and remit the same to the State Government. Examples include Rent paid to Individuals or Business Names.

d. BUSINESS PREMISES: Flat rate of NGN 10,000 for the first year and NGN 5,000 for the subsequent year.

e. OTHERS: Other not too common or not generally applicable include Consumption Tax for Hotels, Event Centers, Restaurants etc, and Capital Gains Tax rate of 10% of Gains from the disposal of yielding assets.

  1. KEEP RECORDS: It is not enough to pay taxes, you must have evidence of the taxes paid and supporting documents to show you paid the appropriate taxes eg for PAYE, the schedule of payment should be kept, Withholding Tax – project/service invoices should be kept safely etc
  2. ENGAGE A TAX CONSULTANT: As your business grows, the need to have a tax consultant cannot be over-emphasized. The more your business grows, and income grows the more you become prone to tax and compliance issues. Engage Tax Consultants, Lawyers with in-depth knowledge of taxation, or Accountants with expertise in taxation.

For your Tax and Compliance Issues

Tolulope Oguntade 
08065111667
compliance@regville.com 

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