The world has gone beyond manual ways of doing things; as technology evolves in the 21st century, only organizations and small businesses that are smart enough use it as a form of leverage against competitors. Leverage gives one ... Read More
The Chief Compliance Officer (CCO) plays a very important role in the attempt to ensure that a company complies with regulations guiding the profession. Every company with a department for regulatory compliance has a CCO. Compliance means establishing adequate supervision and ... Read More
Cloud accounting software is hosted on remote servers, and provides accounting capabilities similar to the SaaS (Software as a Service) business model. Cloud accounting software is particularly more useful for ... Read More
The main reason for setting up any business is to make profit. Businesses can only make profit when they consistently meets the demands of their customers. Administration and compliance are essential parts of a business that attention should be paid ... Read More
Payroll is a company's records of its employee's wages, bonuses, and withholding's. Payroll is a major expense for businesses.
How does payroll work? Employees keep a record of the number of hours, days, or weeks that they have worked, depending on the ... Read More
It is common knowledge that companies that do not take auditing records seriously are positioning themselves for ominous compliance implications. Truly, servicing clients and managing employees can be tasking, yet, good records management should not be taken for granted.
With ... Read More
The Federal Executive Council, the highest Executive decision making organ in Nigeria just approved a new National Tax Policy for the country. The policy will now be endorsed by the National Economic Council to recognize the Federal System of Government given ... Read More
With the current economic realities in Nigeria, it is evident that most organizations cannot withstand regulatory punches - yet, myriads are incessantly falling victims of such.
In 2015/2016 alone, regulatory tides were against large corporations that were fined over N1billion due to ... Read More
FEDERAL INLAND REVENUE TAX AUDIT- How to Prepare For It
Did you get one of those scary audit notices from the FIRS in your mailbox? Do not fret because you are not alone. It is a yearly practice for the ... Read More
The Capital Gains Tax Act contains comprehensive guidelines on how Capital Gains should be taxed. It also included the terms, conditions, and clauses attached to their taxation. It is made up of 47 sections, with subsections embedded in them. It is however ... Read More
ARE YOU AN ACCOUNTANT OR SMALL BUSINESS OWNER? WHY YOU NEED SAGE ONE CLOUD ACCOUNTING SOFTWARE
The transition to the Nigeria Tax Act (NTA) 2025 is now in its active delivery stage. As of MAY 2026, the "grace period" of the new regime is ending, and the Nigeria Revenue Service (NRS) has begun active enforcement. Understanding the specific windows for compliance and the penalties for missing them is new to avoiding financial sanctions. It is worth noting that NTA 2025 is not newly introduced. Compliance window or offenses instead the framework is designed to bring absolute clarity to taxpayers.
Timeline of Enforcement The transition followed a phased "Activation" model: June 26, 2025: President Tinubu signed the four primary Reform Bills. The Nigeria Revenue Service Act, Nigeria Tax Administration Act, Nigeria Tax Act and Joint Revenue Board Act became legally effective on this date to allow for the structural rebranding of the FIRS to the NRS. January 1, 2026: The Commencement Date. All new tax rates (including the 0% rate for small businesses 30% for large companies and the 4% Development Levy) and administrative procedures became mandatory. April - June 2026: The First Filing Cycle. Companies with a December 31 year-end are currently navigating their first full filing period under the unified NTA 2025 rules. January 1, 2028: The sunset date for certain Free Trade Zone exemptions. After this date, entities in these zones will be fully liable for tax on sales to the customs territory.
Timelines for Filing and Extensions The Nigeria Tax Administration Act (NTAA) 2025 has harmonized filing deadlines across the country. Standard Deadlines Company Income Tax (CIT): Must be filed within 6 months after the end of the company's accounting year. VAT & Withholding Tax: Returns must be submitted on or before the 21st day of the following month (for VAT) and 30th day (for WHT) of the following month. PAYE: Must be remitted on or before 10th day of the following month. Extensions The NRS may grant an extension for filing if a taxpayer applies before the deadline and provides a valid reason (e.g., system outages or serious technical difficulties). Note: An extension of the filing date does not automatically extend the payment date . You may still be required to make a "provisional payment" to avoid interest charges while the extension is active.
Enforcement of the Act: “New Teeth" The NRS has significantly more autonomy than the previous FIRS. They are now empowered to enforce compliance through automated and digital means. Digital Focalization The NRS is deploying a "single window" digital platform. Enforcement is now largely automated: Automatic Flags: The system automatically flags businesses that have a turnover above ₦100M (tracked via bank records) but are still claiming the 0% "Small Company" tax rate. Technology Access: Refusing to grant the NRS access to your business's digital accounting systems for an audit carries a massive penalty of ₦1,000,000 for the first day and ₦10,000 for every day the refusal continues. Modern Sanctions (The "Cost of Failure") The 2026 penalty regime is designed to make non-compliance more expensive than the tax itself: Offense | Penalty (2026 Rates) Failure to Register for Tax ₦50,000 first month; ₦25,000 each subsequent month. Failure to File Returns ₦100,000 first month; ₦50,000 each subsequent month. Late Remittance of WHT Original tax + 10% penalty + Interest at CBN rate. False Refund Claims 100% of the amount claimed + interest. Obstruction of Officers ₦1,000,000 administrative penalty + potential imprisonment. Strategic Advice: With the ₦100,000 initial penalty for simple filing defaults, the NRS is signaling that "silence" is no longer an option. Even for small businesses with 0% tax liability, filing a "Nil Return" is the only way to prove compliance and avoid automated fine
