What Are The Different Types Of Small Business Tax In Nigeria

Please can someone explain in simple terms what kind of tax a small business person need to pay?

New Member Asked on September 26, 2016 in Finance.
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There are droves of taxes named according to the small business in Nigeria. However, two are the most applicable for all small businesses in Nigeria. There are:-

Value Added Tax (VAT) :

Almost all small and big businesses that deal with taxable product or service will have to pay Value Added Tax also known as VAT in Nigeria.

This form of Tax in Nigeria is basically paid by the consumers while the small and big businesses are used as collecting agent. Businesses add certain percentage to their goods and services as VAT which they remit to the FIRS who in turn issues them e-ticket.

Capital Gains Tax (CGT) :

All the companies registered in Nigeria which earn any capital gains or gains on the disposal of any form of assets whether it is in Nigeria or not are liable to Capital Gains Tax.

Capital Gains Tax is calculated and submitted with Companies Income Tax to FIRS through Designated Bank.

We have other Taxes like the Hotel Consumption Charges in places like Lagos.

The Hotel Occupancy and Restaurant Consumption Tax Law  imposes a 5% tax on goods and services consumed in hotels, event centers and restaurants within Lagos State.

Pro Consultant Answered on October 14, 2016.
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