UNDERSTANDING YOUR TAX OBLIGATIONS
Hello guys, trust we all had an amazing holiday. Tax liability or obligation is the total amount of tax debt owed by an individual, corporation or other entity to a taxing authority like the Internal Revenue Service (IRS). It is simply the total amount of tax you are responsible for paying to the government.
Do you ever wonder why taxes are paid?
If you fall under the set of people that do not understand what tax is, its obligation and why tax is been paid, then ride with me as I simplify these terms. As a business owner, career person or an individual, you are to pay your tax to the government because, the taxes are used for numerous responsibilities for the development of the country, betterment of society as a whole, and other non-developmental but essential obligations to the citizens of the country. In a nutshell, Taxes are an important avenue of revenue generation for the government, it helps give back to the government and contribute to development.
The three tax administration within Nigeria are:
The Federal Board of Inland Revenue
State Inland Revenue Board
Local Government Revenue authorities
The administration of tax is vested in various tax authorities depending on the type of tax. Thus, indicate the type of tax you need to pay before you proceed.
Here is a simplified process to pay all taxes:
This is the online process of paying your tax, and it is the must simplified method. In Nigeria, the taxes are usually collected by the National Federal Inland Revenue Service (FIRS). The process are:
Go to www.firs.gov.ng
Click on e-services, then click on e-filing
Download the form and fill in the details
Scan the filled document and send it to the tax office.
Visit my YouTube channel (STRUGZ TIPS) to learn more about the:
Tax rate in Nigeria
The different types of taxes
The corporate tax in Nigeria and
The tax residency in Nigeria.
P.S: All businesses registered in Nigeria are expected to pay the Companies Income Tax (CIT).