With the convergence of Tax Authorities and regulatory bodies in Nigeria, tax is becoming tougher by the day and the need for companies to be more tax compliant becomes very relevant. Tax administrations have now adopt different types of network strategies for co-operating with tax service providers that now brings tax work closer with the chances, escaping the tax web becomes more risky.
Government has stepped up Tax compliance across all jurisdictions, including international, state and local environment. Consequently, businesses now require experts to support them in:
Accounting for income taxes
Mergers and acquisitions tax services
Co-sourcing and outsourcing of roles or processes
Specialty tax consulting
Strategic tax planning
As an advisory, we advise preventing tax controversy to managing it and resolving it being the last.
At Qeeva we assist businesses, individuals and organisations with tax strategy, planning, tax accounting, mergers and acquisition tax services and compliance. Our service also include specialty tax like expatriate tax
Our tax practices offers taxes in Personal Income Tax, Capital Gains Tax, Company Income Tax, Value Added Tax, Withholding Tax, Education Tax, Stamp Duties Act, Petroleum Profit Tax,
Expatriate Tax services
We support our client with expatriate tax services. Companies that employ expatriate in Nigeria and must file personal income tax returns are supported by us. Where they need to establish a company in Nigeria we also help them.
We encourage you to work with recognized tax expert on expatriate taxation. Our advisory includes tax planning and tax filings.
As you may know, an expatriate in Nigeria that his employment costs are recharged to a Nigerian company or borne by a „fixed base‟ in Nigeria; or that is in Nigeria for an aggregate of 183 days in any 12-month period (including leave and temporary absence); or where he is not liable to tax in another country which has a double tax agreement with Nigeria liable to tax under the Personal Income Tax Act as amended.
As it were, expatriate that may not have stayed in Nigeria for straight 183days but who may have been seconded to their oversea locations but intermittently in Nigeria or have their salaries paid by the Nigeria entity will be exposed to personal income tax even when they may never have performed their duties in Nigeria.
Businesses, Individuals and Corporate Bodies will need to avail themselves of best advisory to avoid tax controversies.
Personal Income Tax Services
We help our clients to meet the requirement of Personal Income Tax Act 2011 as amended regarding the following:
Personal Income Tax (PIT) Returns
(I) Self-employed Individuals
In this part, a self-employed individual is either an individual carrying on a personal business
(commonly known as a sole trader), profession or vocation; or each of the individuals jointly
carrying on a business in partnership (commonly known as partners).
A self- employed person is required to file Returns with the Tax Authority nearest to his
place of residence.
The income is taxed on preceding year basis.
Contents of a Personal Income Tax Return
- Duly completed Self-Assessment form
- Duly completed Income Tax Form (Form A):
a Statement of full amount of income earned in the preceding year from all sources;
b Particulars of income, reliefs, deductions and allowances the person is entitled to;
Declaration/attestation on of the correctness and completeness of Returns by the taxable person;
- Evidence of payment of tax.
Due Date for Filing Personal Income Tax Returns
A Personal Income Tax Return must be filed on or before 31st March of the year of assessment.
(II) Personal Income Tax Returns by Individuals in Employment
Personal Income Tax is paid by individuals in employment through the Pay As You Earn (PAYE) system. For these individuals, the income is taxed on actual basis; meaning that income earned in a year is taxed within the same year.
The contents of tax returns remain the same as under self-employed individuals except that the taxpayer is required to declare;
- Income other than employment income earned from all sources in the preceding year and
- Income earned from employment in the current year.
(III) Pay As You Earn (PAYE) Tax Returns by Employers
Employers are required to deduct and account for personal income tax deducted from the
Employment income of their employees under the PAYE system by way of a return filed with
the Tax Authority on monthly basis. PAYE returns must be submitted for each month on or before the 10th day of the month following the month to which the tax deductions relate using the appropriate schedule
(IV) Annual Returns by Employers
Employers are required to file annual returns in respect of PAYE deduc_ons made from their respective employees’ income in the past year
Contents of Annual Returns
- Completed form A (Income Tax Form for Returns of Income and claims for allowances and relief)
- Form H1 (Annual Income declaration)
- A schedule of tax deduction from the employer containing the following information:
- Name of employer
b Taxpayer Identification on Number (TIN) of employer
- Names of employees
- Taxpayer Identification on Number (TIN) of employee
- Total emolument for each employee
- Consolidated relief
- Tax deducted
h Overall total tax charged and remitted
- Evidence of payment of tax
Due Date for Filing Annual Returns by Employers
Every employer is required to file a return not later than 31st January of every year
First N300,000 @ 7% Next
Next N300,000 @ 11%
Next N500,000 @ 15%
Next N500,000 @ 19%
Next N1,600,000 @ 21%
Above N3,200,000 @ 24%
Whether you require determination of appropriate taxes applying the tax rates, claiming all tax reliefs, filing PAYE, Personal Income Tax Returns, Filing Annual Returns for all your Company Staff, Qeeva’s Tax Services Units will provide support for all the above services. You can call us on +2348023200801,08075765799 or email firstname.lastname@example.org for details.
Company Income Tax Services
In Nigeria, every limited liability company is required to file Returns with Federal Inland Revenue Service even if exempted by the law from paying tax. For new companies, such returns should be filed within eighteen (18) months of incorporation on or six (6) months after accounting year end which ever come first. For old and existing companies, the returns should be filed within six (6) months after the accounting
Contents of a Company’s Income Tax Returns
With the phased transition to the adoption on of International Financial Reporting Standards, as from January 2013; the contents of the returns to be filed include:
- Duly completed Self-Assessment form.
- Audited Financial Statement comprising:
- Statement of financial position otherwise called Balance Sheet
b Statement of comprehensive income (Profit and Loss Account)
- Statement of changes in equity.
d Statement of cash flows.
e Notes on significant Accounting Policies and other explanatory information
- Comparative figures of preceding year on the Generally Accepted Accounting Principles (GAAP) basis to be included in the returns.
- Tax computations.
- Capital allowances computation.
- Schedule of Fixed Assets
- Evidence of payment of the taxes due.
The Audited Financial Statement should be signed by two Directors.
The accounts should be audited and signed by External Auditors who must be members of a recognized professional body.
Due Date for Filing Companies Income Tax Returns
1) In the case of an old Company, that has been in business, within six (6) months from the end of the Company’s accounting year.
2) In the case of a newly incorporated Company, either within eighteen (18) months from the date of incorporation or six (6) months from the end of the Company’s first accounting period whichever is earlier.
Education Tax (EDT) Returns
The returns for Education Tax are must be filled with Companies Income Tax or Petroleum Profit Tax as the case may be, in a form prescribed from time to time by FIRS. Education Tax is paid for separately.
Education Tax Returns Filing require:
- Computation of education tax payable
- Duly Completed Self-Assessment form attested to by a Director or Secretary of the company
- Evidence of payment of the education on tax due
At Qeeva Advisory, the key services we offer in this regard include:
- Company Income Tax Compliance Services
- Education Tax Compliance Services
- Filing of Returns
- Preparation of Appropriate Taxes
- Tax Planning
- General tax advisory in the scope of CIT.
Get in touch on +2348023200801,8075765799,email@example.com for further details.
Capital Gains Tax (CGT) Returns
The duty to file CGT returns arises when there is a capital gain from the disposal of a chargeable asset. CGT returns are filed along with the various tax returns for individuals and companies. Capital Gains Tax is paid separately at the rate of 10%.
Businesses, individuals and other corporate bodies are liable to file Capital Gains Tax Returns when they dispose chargeable assets at 10% on the Gains. Chargeable assets are: all assets, options, debts, foreign currencies save for exemptions in the Principal Act.
Contents of CGT returns
a Duly completed self-assessment forms
b Computation of Capital Gains Tax payable
c Schedule of Assets including proof of sale
d Evidence of asset and asset improvement
e Other relevant information
f Evidence of payment of the CGT
The due date for filing CGT according to the CGTA Section 17(3) is the last day in that year of assessment.
Qeeva Advisory’s team can help you will filing your returns as may be required. Need to do, get in touch. Call +2348023200801,8075765799
Value Added Tax (VAT) Returns
VAT returns are filed monthly by taxable persons in line with the ACT.
Contents of the VAT Returns
Completed VAT Return Form 002 will contain the following details
- Total Value of supplies made during the period
- Disclosure of the value of output tax charged on its invoices
- Total Output Tax
- Total Input Tax
- VAT Payable
- Total value of purchases on which input tax was paid
- Schedules of both input and output tax a ached to the VAT returns, together with any adjustments made during the period, for bad debts, credit notes, etc.
Net VAT due i.e. the excess of output tax over input tax
- Evidence of payment of the VAT
- Signed declaration of completeness and correctness of the returns with the VAT Act 2004
Due Date for Filing VAT Returns
The VAT returns must be filed on or before the 21st day of the month following that in which the transaction was made.
Should you require help, Qeeva Advisory can support you to deliver on compliance with the Act on a monthly basis as penalties are harsh. Give us a call today on +2348023200801,8075765799
Transfer Pricing Returns
Companies or entities, which are members of a group or otherwise connected with another company or entity in Nigeria or overseas, are required to submit the following along with the annual income tax returns:
- a) Transfer Pricing Declaration Form
This form is completed once except in the event of significant changes to the information provided initially.
The form is to be completed and submitted at the Tax Office where the taxpayer normally files its income tax returns.
- b) Transfer Pricing Disclosure Form
This form shall be completed in order to disclose details of controlled transactions for each year of assessment. The form shall be packaged separately with a copy each of Audited Financial Statements, completed Self-Assessment Form and tax computation schedules and submitted along with the annual income tax returns at the Tax Office where the taxpayer normally files its income tax returns-Source: FIRS
If you require support in Transfer Pricing Documentation & Filing, get in touch today on +2348023200801,8075765799 or firstname.lastname@example.org.