FIRS – Regville Associates

HOW TO NAVIGATE THE LATEST TAX REFORMS BY THE FEDERAL INLAND REVENUE SERVICE (FIRS) AND MINIMIZE YOUR NEW BUSINESS’S TAX BURDEN

As a new business owner in Nigeria, it is crucial to stay abreast of the latest tax reforms introduced by the Federal Inland Revenue Service (FIRS) to minimize your tax burden and maintain compliance. The FIRS is responsible for collecting taxes on behalf of the federal government, including corporate income tax, value-added tax (VAT), and other taxes.

To navigate the latest tax reforms introduced by the FIRS, here are some tips that can help you minimize your business’s tax burden:

UNDERSTAND THE VERIFICATION OF TAXPAYER IDENTIFICATION NUMBERS (TINS)

One of the recent reforms introduced by the FIRS is the verification of Taxpayer Identification Numbers (TINs). This process ensures that TINs are correctly registered and linked to the right taxpayers, helping to prevent tax evasion and improve tax compliance. It is essential to ensure that your TIN is verified and up-to-date to avoid penalties and fines.

KNOW YOUR VAT OBLIGATIONS

Another significant change is the increase in the VAT rate from 5% to 7.5%. However, businesses with an annual turnover of less than 25 million naira are exempt from paying VAT. It is crucial to understand your VAT obligations and to ensure that you are compliant with the regulations to avoid penalties and fines.

ENGAGE A PROFESSIONAL TAX CONSULTING FIRM

Navigating these FIRS tax reforms can be challenging for businesses, but engaging the services of a reputable tax firm can help. A professional firm like Regville Associates provides tax advisory and compliance services to businesses in Nigeria. By engaging their services, businesses can stay up-to-date with the latest FIRS tax reforms and ensure that they remain compliant.

Regville Associates can help businesses verify their TINs, file tax returns, and provide advice on VAT compliance. They can also help businesses identify tax incentives and exemptions they may be eligible for, reducing their tax burden.

In conclusion, staying compliant with the latest FIRS tax reforms is critical for businesses in Nigeria. By understanding the verification of TINs, knowing your VAT obligations, and engaging the services of a reputable tax firm like Regville Associates, you can minimize your business’s tax burden and ensure compliance.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

LEGAL & TAX: FIVE (5) COMMON MISTAKES MADE BY STARTUPS

Starting a new business is an exciting and challenging endeavor, but it can also be risky. Legal and tax mistakes are common among startups and can lead to significant financial losses and legal trouble. In this article, we will discuss five common legal and tax mistakes made by startups and how to avoid them.

1. NOT INCORPORATING: One common mistake made by startups is failing to incorporate their business, which can lead to personal liability for the company’s debts and legal issues.

2. NOT PROTECTING INTELLECTUAL PROPERTY: Startups often overlook the importance of protecting their intellectual property, such as trademarks and patents, which can lead to legal disputes and financial losses.

3. NOT KEEPING ACCURATE FINANCIAL RECORDS: Many startups fail to keep accurate financial records, which can lead to legal issues and difficulty in obtaining funding.

4. NO UNDERSTANDING TAX LAWS AND DUE DATES: Startups often make the mistake of not understanding the tax laws and regulations that apply to their business, which can lead to penalties and fines.

5. NOT HAVING A CLEAR EQUITY SPLIT AMONG FOUNDERS: Startups often make the mistake of not having a clear equity split among the founders, which can lead to disagreements and legal issues. It is important to have a clear agreement in place from the beginning.

To avoid or remedy these pitfalls, contact us today

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

FIRS TAX CLEARANCE CERTIFICATE IN ONE CLICK: FIVE TAKE-HOME POINTS

INTRODUCTION

January 2nd 2023, The Federal Inland Revenue Service via its social media platforms gave Business Owners a beautiful Happy New Year Gift: Get Your Tax Clearance Certificate In One Click. Waoo! what a relief, what a joy to business owners. Industry experts showered praises on the Revenue Service, they said it is a giant boost to the Nation’s Ease of Doing Business.

We compiled Five (5) Take Homes from this development

1. NO LIABILITY FROM PRECEDING YEARS: Only Companies with no liabilities including already due VAT will have access to download the Tax Clearance Certificate.

2. PREVIOUS ACCOUNTS/STATEMENT OF AFFAIRS: Preceding Years’ Audited Financial Statement or Statement of Account must have been filed.

3. TAXPROMAX REGISTRATION: If you have not completed your TaxProMax Registration, then you can’t have access to the platform. Issuance of Tax Identification Number (which recently comes with CAC Registration) doesn’t imply the Company is registered on TaxProMax.

4. BUSINESS NAMES: It is worth noting that Business Names can’t apply for or be issued Tax Clearance certificates rather the State issued Tax Clearance Certificate/Document will suffice as the Business Name Tax Clearance.

5. DECEMBER 31ST 2023 EXPIRATION: Unlike the Temporary TCC rolled out some years back which covered only 6 months, this is a full-year tax clearance certificate bearing December 31^st 2023 as its expiration date.

CONCLUSION:

This is a beautiful development and we appreciate the management of FIRS for this lofty stride, reducing the bottleneck process of getting TCC from tax offices.

We also want to draw the attention of the Revenue Service to the other missing information on the TCC. A careful look at the downloaded Tax Clearance Certificate as of the 3rd of January, 2023 shows that information for some assessment years is missing. We are sure the Revenue Service has duly noted the anomaly and will rectify same as soon as possible.

For Tax, Tax Clearance Certificates and other Compliance Matters

Tolulope Oguntade
Regville Associates
compliance@regville.com
08065111667