NIRSAL Targets 8m Farmers in Geo-Clusters Scheme https://dailyasset.ng/nirsal-targets-8m-farmers-in-geo-clusters-scheme/
TAX MATTERS IN NIGERIA AS AT 23/01/2020
*Explanations on Current Tax Issues in Nigeria:*
1. All tax payers, whether qualify to pay tax or not, have to file annual tax and monthly vat returns
2. Witholding tax will continue to be deducted from advance payments for qualified amounts but refund can be sought by SMEs for those not in the tax paying bracket
3. Determination of qualifying SMEs whose Turnover is not up N25m and so not qualify to pay CIT, VAT and EDT will be determined on preceding year basis
4. When an SMEs' turnover clocks N25m and above, it will be expected to register for VAT and pay all taxes
5. Tax exemptions for N25m turnover and below includes enterprises and individuals which pay taxes to state govts
6. Minimum tax is not applicable any longer for entities within tax exemptions
7. Vat is now to be made on cash transaction basis and not on receivables
8. Many more items have been exempted from Vat, therefore consumers should be aware because at point of payments for several items bought, sellers can charge 7.5% on all and only remit for qualifying vat expenses
9. Contract Invoices already raised and presented for payment before 1st Feb 2020 will still be at 5% VAT even after commencement date of 7.5% vat
10. Education tax is also exempted for businesses, including enterprises, with N25m and below
11. Vat exempt for businesses of N25m and below does not exempt them from paying vat at 7.5% but cannot charge such vat and therefore would not register for VAT from this year.
12. All individuals and entities are required to obtain TIN and tax authorities can have access to their tax information
13. Firs currently has access to bank transactions of N5m and above of customers
14. All lien placed on bank accounts of customers have been lifted by FIRS and that era may not occur again except for tax payers with established tax liabilities but fail to pay.
S. Abdullahi FCA, ACTI
22.1.2020
1. All tax payers, whether qualify to pay tax or not, have to file annual tax and monthly vat returns
2. Witholding tax will continue to be deducted from advance payments for qualified amounts but refund can be sought by SMEs for those not in the tax paying bracket
3. Determination of qualifying SMEs whose Turnover is not up N25m and so not qualify to pay CIT, VAT and EDT will be determined on preceding year basis
4. When an SMEs' turnover clocks N25m and above, it will be expected to register for VAT and pay all taxes
5. Tax exemptions for N25m turnover and below includes enterprises and individuals which pay taxes to state govts
6. Minimum tax is not applicable any longer for entities within tax exemptions
7. Vat is now to be made on cash transaction basis and not on receivables
8. Many more items have been exempted from Vat, therefore consumers should be aware because at point of payments for several items bought, sellers can charge 7.5% on all and only remit for qualifying vat expenses
9. Contract Invoices already raised and presented for payment before 1st Feb 2020 will still be at 5% VAT even after commencement date of 7.5% vat
10. Education tax is also exempted for businesses, including enterprises, with N25m and below
11. Vat exempt for businesses of N25m and below does not exempt them from paying vat at 7.5% but cannot charge such vat and therefore would not register for VAT from this year.
12. All individuals and entities are required to obtain TIN and tax authorities can have access to their tax information
13. Firs currently has access to bank transactions of N5m and above of customers
14. All lien placed on bank accounts of customers have been lifted by FIRS and that era may not occur again except for tax payers with established tax liabilities but fail to pay.
S. Abdullahi FCA, ACTI
22.1.2020
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