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Income taxes and the related laws are also subjected to evasions and for the same reason Nigerian government has also taken measures to make sure that the issue is never faced in this regard and the government collects and achieves the revenue targets. The Federal Inland Revenue System also constitutes the teams in this regard which make sure that accounts and of the businesses and the related entities are checked periodically so that the issue of tax evasion is never faced.
The Income taxes depend upon the codes which are also modified to collect maximum tax and to make sure that the works of the general public welfare continue. The Income taxes are calculated in the Nigeria according to the progressive system which makes sure that as the income raises the tax rate also progresses at the same pace so that the person or the entity earning the highest income is taxed at the maximum level. To get the most out of the idea the individuals in Nigeria should make sure that the income tax laws are thoroughly studied and applied at the times returns are to be filed.
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.
Income taxes are categorized in several categories to make sure that the best is provided to the individuals that are subjected to pay them. Different countries of the world make different laws to make sure that the Income taxes are collected and are spent for the general public welfare. In Nigeria the government also makes sure that the best is provided to the entities that are subjected to Income taxes and hence the categories of the taxes are defined by the Federal Inland Revenue Service to make sure that the applicable laws and regulations are there to support the entities. The companies are taxed according to the company income tax law and the individuals are taxed according to the personal income tax law. Income taxes in Nigeria are now also calculated and submitted with the help of e-filing system which allows the government to calculate and analyze the tax submission in no time at all. The taxable income of the entities in the Nigerian economy is calculated according to the simple rule which states that the overall profit or earning of the entity is taxed after deducting all expenses and other deductions.
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