Tax Education Series - Episode 1

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An introduction into the Nigerian tax administration 


By: Richard Okunola

The tax administration in Nigeria is categorized under the three tiers of government present in the country i.e. the federal level, the state level and the local government level. 

In accordance with the Nigerian constitutional provision, the Federal government through the Federal Inland Revenue Service (FIRS) administers all taxes due from corporate bodies, while the FCT-IRS manages taxes of residence of the Federal Capital Territory. Each State government taxes are being administered by the relevant State Board of Internal Revenue (SBIR); while, the Local government taxes are being administered by the Local Government Revenue Committee (LGRC).

Taxes administered by the FIRS include:

Company income tax (CIT), Withholding tax (WHT) on companies, Petroleum Profit Tax (PPT), Value added tax (VAT), Tertiary education tax (TET), Capital gain tax (CGT) for companies, Stamp duties for companies and other related company taxes.

Taxes administered by the SBIRs include:

Personal Income Tax (PIT), WHT for indviduals, Stamp duties for individuals, Capital gain taxes for individuals, Development levy, Business premises registration fees e t c.

Taxes administered by the LGRCs include: 

Tenement rate, Marriage, Birth and Death registration fees, Motor park levies, Market taxes, Radio and Television licence fee, Sign board and advertisement permit fees, e t c.

Summary

FIRS - administer taxes relating to the federal Government

SBIRs - administers taxes relating to the state Government

LGRCs - administers taxes relating to the local Government.

#Tax #TaxSeries #TaxClubs #TaxEducation

Comments

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