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Tax › Income taxes 5% VAT

 December 22nd, 2015  | Tax

Income taxes are imposed in each and every country of the world as these taxes make sure that the government has sufficient funds to carry out all the public interest related projects for the people of the country. In Nigeria the income taxes are imposed to different entities according to predefined rates which also make sure that the government collects the entire amount within time for smooth functioning. Making the best use of the phenomenon the Nigerian government has divided the taxes into several sub categories and the laws or act have been made so that there is no confusion left in this regard. The income taxes are also collected from the companies that are operating within Nigeria. The Company Income Tax Act has been regulated in this regard to make sure that the tax collecting authorities make the best use of the act to penalize or collect taxes within time. The government has also imposed VAT or value added tax on all the consumers or buyers of the products. The VAT returns are also income taxes the returns of which are filed by the companies as well as the individuals who carry out any such transaction in open market. The commodities or the services that are bought by any person within Nigeria are subjected to VAT which is 5%. All the prices of the commodities and services are therefore set taking into view the 5% VAT which also make sure that VAT calculation becomes easy and smooth. VAT returns are filed on monthly basis and for the same reason it is also to be noted that the entity should make sure that the designated bank is visited with the proof of payment as well as the VAT returns so that in the longer run there is no issues from the government’s side in collection of tax. Income taxes are also one of the most major sources of funding the ongoing projects for the betterment of the public that are started by the government. The Nigerian government also collects the stamp duties and all the written documents that bind the companies and individuals in agreements are the ones that fall under this form of income taxes. The stamp duties are also paid in the designated banks that the respective tax office has designated to individual or company. The commissioner of stamp duties makes sure that all the documents are submitted and are duly checked and stamped. The tax is then calculated accordingly which the entity needs to pay at the FIRS of the designated bank in this regard. Income taxes are a source for the well being of the general public so by using the national as well as private TV channels the Nigerian government also makes sure that the message is spread throughout the country to make sure that the issue of tax avoidance and evasion are eliminated once and for all.

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