What Entrepreneurs Should Know About Taxation

 

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I was having a conversation with a close friend; for the purpose of this write-up I will call her Patra. Patra and I have been friends for over 5 years. We met while I was in my second year in University. She was one friend that did everything better than me, from being a star student to being the best club hopper and now as a business woman she was very successful. She is that friend that challenges me.

The other day while we discussed on the state of Nigeria, since that is all there is to talk about these days; from fuel scarcity, potential increase in VAT, Ben Murray-Bruce’s ‘Common Sense’ epistles to Governor Fayose’s outbursts about the APC government and its officials, I casually asked her if she paid her taxes.

Continue reading “What Entrepreneurs Should Know About Taxation”

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An Overview Of Taxation of Non-resident Companies in Nigeria

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It is a known principle of law that every entity, be it an individual or a corporation, is subject to tax to be imposed by a relevant tax authority within a year of assessment. More specifically, a company is chargeable to a tax payable at a specified rate upon its profits accruing in, derived from, brought into or received in Nigeria in respect of certain transactions.

This is provided for in section 9 (1) of the Companies Income Tax Act, Cap. C21, LFN, 2004. For the purpose of imposing company tax, a company is defined as “any company or corporation (other than a corporation) solely established by or under any law in force in Nigeria or elsewhere” (Section 105, Company Income Tax Act). Continue reading “An Overview Of Taxation of Non-resident Companies in Nigeria”