As a Nigerian business owner, you may have a lot of questions about taxes, especially when it comes to the Federal Inland Revenue Service (FIRS). From understanding your tax obligations to submitting your returns, the process can be confusing. To help you navigate the process, we’ve compiled a list of the 10 most frequently asked questions about FIRS taxes and provided quick answers to each one.

What are my tax obligations as a business owner? When you own a business in Nigeria, you are required to register with the FIRS and file your returns on a regular basis. This includes paying taxes such as Value Added Tax (VAT), Company Income Tax (CIT), and Pay-As-You-Earn (PAYE) for employees. It’s important to understand what taxes you need to pay and when they are due so you can plan accordingly and avoid penalties.

How do I register my business with the FIRS? To register your business with the FIRS, you’ll need to submit a completed TIN application form, along with other relevant documents such as your business registration certificate and a valid means of identification. You can submit your application in person at a FIRS office or online through the e-Registration portal. The process can be time-consuming, so it’s best to start early and have all the necessary documentation ready.

How often do I need to file my tax returns? The frequency of filing tax returns depends on the type of tax you need to file. VAT returns are typically filed monthly, while CIT returns are filed annually. PAYE returns are filed on a monthly basis. It’s important to keep track of your deadlines and make sure you file your returns on time.

What happens if I don’t file my tax returns on time? If you don’t file your tax returns on time, you may be subject to penalties and fines. The FIRS may also take legal action against your business, which can lead to additional penalties and fines. This can be a serious problem for your business, so it’s essential to stay on top of your tax obligations and file your returns on time.

Can I get an extension on my tax filing deadline? Yes, you can apply for an extension on your tax filing deadline. However, you’ll need to provide a valid reason for the extension and submit your application before the deadline. It’s important to note that an extension is not a guarantee and the FIRS has the final say in whether or not to grant it.

How do I calculate my tax liability? Your tax liability is calculated based on your taxable income and the applicable tax rates. The FIRS provides a tax computation form to help you calculate your tax liability. It’s important to make sure your calculations are accurate to avoid any issues with the FIRS.

Can I claim tax deductions on my business expenses? Yes, you can claim tax deductions on certain business expenses such as rent, salaries, and travel expenses. However, you’ll need to provide documentation to support your claim. Keep detailed records of all your business expenses to make sure you’re taking advantage of all the tax deductions available to you.

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How do I submit my tax returns? You can submit your tax returns online through the e-Filing portal or in person at a FIRS office. You’ll need to provide your TIN, tax computation form, and any supporting documentation. The process can be a bit complicated, so make sure you understand the requirements and have all the necessary information before you submit your returns.

Can I dispute a tax assessment? Yes, you can dispute a tax assessment if you believe it to be incorrect. You’ll need to submit your dispute in writing, along with any supporting documentation. It’s important to note that the FIRS has the final say in determining the outcome of your dispute. If you’re unsure about how to dispute an assessment or what documentation to include, you can reach out to the FIRS for assistance.

Can I get assistance with my taxes? Yes, the FIRS provides a variety of resources to help you understand and comply with your tax obligations. This includes guides, forms, and a helpdesk for assistance. If you’re unsure about any aspect of the tax process, don’t hesitate to reach out to the FIRS for help. They are there to assist you and ensure that you comply with the regulations.

Stay on top of your tax obligations

Understanding your tax obligations and complying with the FIRS regulations can be daunting. However, by familiarizing yourself with the most frequently asked questions about FIRS taxes, you can make the process less stressful and more manageable. It’s important to stay on top of your tax deadlines, file your returns accurately, and take advantage of all the tax deductions available to you. Remember, it’s always better to be proactive and stay on top of your tax obligations than to be reactive and face penalties and fines. Happy Taxing!