Taxes are an important part of revenue generation for the government, as individuals and business owners paying taxes help give back to the government and contribute to development.
All business registered in Nigeria are expected to pay the Companies Income Tax (CIT).
Partnerships and ventures are expected to pay the Personal Income Tax (PIT) which is administered either as – PAYE (Pay-As-You-Earn) taxes from employment (employees) or Taxes from self-employed person
So, as long as your business is registered in Nigeria, you are expected to pay taxes. The process has been made much easier these days, as the Federal Inland Revenue Service (FIRS) lets you complete most of the process online.
Step 1: Obtain/Verify you Tax Identity Number (TIN)
Your Tax Identity Number (TIN) is a unique number issued identify every taxpayer. To obtain a new one or to verify your number, visit the FIRS TIN Verification page. You will be required enter the number registered with Corporate Affairs Commission (CAC).
Your company isn’t registered with the CAC yet? Click here to learn how to.
If you Search is successful, then you enter your Email address to have the details sent to your mail.
Step 2: Calculate your taxes due
The FIRS page also includes a tax calculator that helps individuals and organisations determine how much tax the are required to pay. Use it so you don’t end up over or underpaying.
Step 3 Obtain your tax forms
Tax forms are also downloadable from the FIRS site.
Step 4: Check your tax due dates
You can also check the FIRS website to find when your tax payments are due every month, that way you would not default.
Step 5: Pay online
When you have determined the due date, you can then make your payments online. If this process doesn’t work for you, you can find the nearest FIRS office to you and make enquiries.
You will require the following documents when filing taxes for your SME
- Duly completed Application Form
- Certificate of Incorporation or Business Name Registration
- Memorandum and Article of Association
- Documents that contain the following information: Registered address of the company/enterprise, Principal location of business, Date of commencement and Accounting year end of the business, Name of bankers, auditors and tax consultants
- Valid email address and telephone number
You can find more information on the FIRS website.
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