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Nairaland Forum / Nairaland / General / Business / Tax In Nigeria: How Is It Calculated? (21759 Views)
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Tax In Nigeria: How Is It Calculated? by ascek(m): 12:36pm On Jan 09, 2021 |
For a business man who owns a bnx Nig Ltd., Assuming he has a starting capital of 2,000,000 in naira and at the end of the financial year he makes 500,000 in naira after paying salaries for himself and workers and every other things. How much of this 500,000 will government charge as tax and how is it calculated? Thanks as you provide answers 7 Likes 3 Shares |
Re: Tax In Nigeria: How Is It Calculated? by Pandev(m): 12:42pm On Jan 09, 2021 |
Hey, Okada, carry me go la.las.ticl.ala house, this must enter fp and you go carry me back to this thread. How much? 17 Likes 2 Shares |
Re: Tax In Nigeria: How Is It Calculated? by DICKstractor: 1:09pm On Jan 09, 2021 |
I love math only when I'm given the formula Next person please Fp material 24 Likes 2 Shares |
Re: Tax In Nigeria: How Is It Calculated? by Trustedpro: 1:22pm On Jan 09, 2021 |
You are only required to pay 7.5% of your net profit when your company turnover 20million naira annually. I think you will be asked to pay a token for your annual audited account if you are not making such turnover. 11 Likes 1 Share |
Re: Tax In Nigeria: How Is It Calculated? by ascek(m): 1:49pm On Jan 09, 2021 |
Trustedpro:Thank you bro. This token you talk about, will the government decide it for me or I am to use my discretion? 7 Likes 1 Share |
Re: Tax In Nigeria: How Is It Calculated? by Trustedpro: 2:00pm On Jan 09, 2021 |
ascek: The government have a specific levy on that. You are welcome 2 Likes 1 Share |
Re: Tax In Nigeria: How Is It Calculated? by dedons: 2:06pm On Jan 09, 2021 |
You are to ensure you deduct all expenses and pay only 7.5% of the profit for the year. It could be lesser depending on how well you can play your game. 1 Like |
Re: Tax In Nigeria: How Is It Calculated? by ascek(m): 2:36pm On Jan 09, 2021 |
dedons:Nice one. The bolded is the icing on the cake. |
Re: Tax In Nigeria: How Is It Calculated? by Mide3367: 3:09pm On Jan 09, 2021 |
As a complete company, what are the various tax one pay to government? Who can help me summarise tat? I run a company Hollyway Global Investment. It has a corporate acct but I haven't paid any government levi at all |
Re: Tax In Nigeria: How Is It Calculated? by famouscargo4u: 4:47pm On Jan 09, 2021 |
Mide3367: You pay 7.5% VAT on supplies which is due in 21 days . You pay 20% for a small company on your profit within 6 months after your accounting year and 30% for a big company 2 Likes 2 Shares |
Re: Tax In Nigeria: How Is It Calculated? by walter11590: 5:01pm On Jan 09, 2021 |
Hey, Okada, carry me go la.las.ticl.ala house, this must enter fp and you go carry me back to this thread. How much? |
Re: Tax In Nigeria: How Is It Calculated? by Mide3367: 5:05pm On Jan 09, 2021 |
famouscargo4u:thanks |
Re: Tax In Nigeria: How Is It Calculated? by ascek(m): 9:23pm On Jan 09, 2021 |
famouscargo4u: I'm confused now. So apart from the 7.5% tax on profit, there's a 7.5% on vat and another 20% every 6 months. Really it's complicated and will wonder how much will be left for the owner of the company |
Re: Tax In Nigeria: How Is It Calculated? by ascek(m): 9:28pm On Jan 09, 2021 |
Pandev: I trust Lalasticlala will listen to you. We need more people to comment. There's much to learn especially the young entrepreneurs amongst us |
Re: Tax In Nigeria: How Is It Calculated? by charlesvure: 10:07pm On Jan 09, 2021 |
Small businesses pay an average of 19.8 percent in taxes depending on the type of small business. Small businesses with one owner pay a 13.3 percent tax rate on average and ones with more than one owner pay an average of 23.6 percent. Small business corporations (known as “small corporations”) pay an average of 26.9 percent, according to the Small Business Administration. Large business. The CIT rate is 30% for large companies (i.e. companies with gross turnover greater than NGN 100 million), assessed on a preceding year basis (i.e. tax is charged on profits for the accounting year ending in the year preceding assessment). 2 Likes 2 Shares |
Re: Tax In Nigeria: How Is It Calculated? by NgHotGirls: 1:00am On Jan 10, 2021 |
Mide3367:What is your company business? VAT 7.5% paid on or before 21st of the preceding month 30% company tax at the end of your financial year which shall be done by an auditor 1 Like |
Re: Tax In Nigeria: How Is It Calculated? by NgHotGirls: 1:03am On Jan 10, 2021 |
ascek:7.5% is on your monthly turnover Small business. The CIT rate is 0% for small companies (i.e. companies with gross turnover less than 25 NGN million or less), assessed on a preceding year basis (i.e. tax is charged on profits for the accounting year ending in the year preceding assessment). Medium Business CIT 20% turnover in excess of 25million 6 Likes 2 Shares |
Re: Tax In Nigeria: How Is It Calculated? by famouscargo4u: 4:54am On Jan 10, 2021 |
ascek:No, you don't pay any 7.5% on profit, it is paid to your suppliers quoted on the invoice for goods supplied to you. Thereafter, you pay your normal tax for the year which maybr 20 or 30% on profit depending on size of your company. You will also charge Witholding Tax of 5 or 10% from your suppliers which will deducted from your tax payable for the year. It may be confusing to you, why not let us prepare this for you at a token. 1 Like 2 Shares |
Re: Tax In Nigeria: How Is It Calculated? by ascek(m): 6:20am On Jan 10, 2021 |
famouscargo4u:What's the cost of hiring an auditor? |
Re: Tax In Nigeria: How Is It Calculated? by alushkimo(m): 8:02am On Jan 10, 2021 |
Since it is a limited liability coy, tax will be assessed on the coy’s profit. The company’s profit will be adjusted by non-deductible expenses for tax purposes and non-taxable income to arrive at taxable income on which CIT is computed. Tax rate now varies based on Coy’s turnover. In this instance, tax will be 0% if he has a turnover of less than 25m. ascek: 2 Likes 1 Share |
Re: Tax In Nigeria: How Is It Calculated? by alushkimo(m): 8:08am On Jan 10, 2021 |
ascek:The 7.5% is VAT which is charged on the supply of goods and services. It’s different from income tax. |
Re: Tax In Nigeria: How Is It Calculated? by meetgaya: 9:36am On Jan 10, 2021 |
ascek: you don't hire auditor but appoint, and there is no specific amount. depends on the size of company and the auditor |
Re: Tax In Nigeria: How Is It Calculated? by bigdammyj: 2:25pm On Jan 11, 2021 |
Noted |
Re: Tax In Nigeria: How Is It Calculated? by prodigyy(m): 2:25pm On Jan 11, 2021 |
The system is not really solid. You can eventually evade tax if you're smart. 1 Like |
Re: Tax In Nigeria: How Is It Calculated? by blamingthedevil: 2:25pm On Jan 11, 2021 |
Meet your accountant or accounting student 1 Like |
Re: Tax In Nigeria: How Is It Calculated? by obembet(f): 2:25pm On Jan 11, 2021 |
This forum is full of intelligent people... 6 Likes |
Re: Tax In Nigeria: How Is It Calculated? by YosemiteDan: 2:26pm On Jan 11, 2021 |
Hmmm |
Re: Tax In Nigeria: How Is It Calculated? by blamingthedevil: 2:26pm On Jan 11, 2021 |
ascek: |
Re: Tax In Nigeria: How Is It Calculated? by contigiency(m): 2:26pm On Jan 11, 2021 |
Ok |
Re: Tax In Nigeria: How Is It Calculated? by Flexherbal(m): 2:27pm On Jan 11, 2021 |
Na estimated tax them dey give us ooo. 1 Like |
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