How to Protect your Business from Tax Issues

The implementation of Finance Acts, 2019 is channeled towards raising adequate fund to finance 2020 budget of the Federal Republic of Nigeria. With this intention, no doubt, the Nigeria Government and its Agency (s) will be more than aggressive in their revenue drive, through tax and other non-oil sectors. How to avoid tax problems -SOW Professional The Nigerian government,  both at Federal and State levels are taking the tax policies seriously with the recent passing of the finance bill 2019. The new increased VAT from 5% to 7.5%, exemption of small businesses with less than N25 million revenue from Company’s Income Tax, allows for lower tax rate for medium-sized companies and grants a bonus of 2% on tax payable for early payment by large companies. [VAT Act- as Amended in Section 4][CITA 2004-Amended in Section 40 a, b & c] Though, the Finance Acts has some advantages, but, so many inherent disadvantages are in it, especially, if due professional care are not taken to observe and comply with the disposition of the Acts. In view of this, compliance however, has never been more mandatory than now, thus making it a priority for Nigerians and Nigerian businesses to get their books and filling in order.

Paying your tax is a civic duty and a requirement of the law. If you do not pay your tax, Revenue Agency(s) – Federal, State and Local Government, in some instances will come for you and your business(s) with penalties, ranging from interest, fines, closure of business to possible jail time.

FIRS sealed office -SOW Professional

Tax evasion is a serious offense considered a crime not just by the Nigerian government, but by governments all over the world. Unfortunately, ignorance is not an excuse before the law,  yet, many business(s) are in the dark about how the Nigerian tax policy affects them.

The common questions often asked include:

• Does my business qualify to pay tax?
• How much should my business pay?
• How should my business calculate and charge for tax?
• How should my business file taxes?
• What does my business stand to gain by being tax compliant?

How To Protect your Business from Tax Issues

• Keep your financial records
• Remit your VAT, WHT and other deductions before 21^st of every month
• Deduct PAYE on employee’s salary and remit accordingly
• Audit your financial records annually
• Do your filings and returns with FIRS before end of June 2020.
• Companies outside the 25 Million Naira turnover must pay VAT on invoices received, even, if the VAT was not charged by the issuer or provider of services or goods.
• Pay your Company Income Tax at applicable rate, if your business falls within such threshold.
• Pay your Company Income Tax early, to enjoy 2% bonus on your tax liability.
• Know about your Residence Tax, if you are involve in International business
• Respond urgently to any tax issues raised against your business buy any Agency of Government. With the 2019 Finance Acts, an email, can also be a means of communication with respective tax office.
• Above all, get a professional advise on how 2019 Finance Acts and other tax and fiscal policy affects your business.

As a business owner, should you require clarifications on any of the above listed questions, do not hesitate to contact SOW Professional – a professional Tax Advisory and Management Firm.

We at SOW Professional offer a range of tax and accounting solutions for Small & Medium Enterprises (SMEs and Established Corporate businesses).

We would be glad to assist you in your accounting, tax and business development concerns.

Book a free advisory session with us today.

To know more about Tax Management  or Business Consultancy, kindly contact us at :

E-mail: care@sowprofessional.com                                                                                                                  Website:     www.sowprofessional.com                                                                                                         Phone:        07038254989                                                                                                                                  Whassapp: 07038254989