Do You Need a Tax Clearance to Do Business?
Do You Need a Tax Clearance to Do Business?
If you run a business in Nigeria, there’s one thing you shouldn't overlook: Tax Reporting.
Now, before you brush this aside by thinking it’s all about paying “high taxes,” let’s get something clear...it’s not the tax that’s costing you, it’s the penalty for not reporting or reporting late!
At US & Co., we’ve seen how easily these penalties can catch up on business owners who think they’re being taxed heavily when, in reality, they’re just paying for penalties and not tax, because their tax might have been zero naira - zero kobo if reported on time.
Let us break it down for you.
We recently met a client who was thinking he was being charged with high taxes. But after going through his records, we discovered the real issue: he wasn’t paying any tax at all! Instead penalty. In short, his actual tax balance was zero naira, zero kobo every month.
So, why was he paying so much? Penalties. By not reporting his tax status monthly, he was getting hit with a penalty for non-compliance.
What Non-Reporting Actually Costs You
Here’s the deal: the Federal Inland Revenue Service (FIRS) requires every business to file a monthly report. Even if your tax balance is zero, you still have to file a report. If you skip it, you’ll face a ₦50,000 penalty per month.
Miss three months, and that’s a penalty of ₦150,000 for three months. Now, imagine this building up over a year—just because of missed reports! And yes, even if you don’t owe a kobo, the penalty keeps increasing until you start reporting.
So, what should you do?
1. File a Monthly Report – Even if it’s Zero!
Filing a simple “zero report” every month will keep you penalty-free. Don’t wait until penalties start piling up!
2. Stay Organized: Keep a simple record of your tax obligations, even if they’re zero, to make reporting easy and quick.
3. Work with Professionals: At US &CO, we’ll make sure your tax reporting is up to date, so you don’t have to worry about penalties piling up in the background. We handle the details, so you can focus on your business.
High Penalty, Not High Tax
These penalties are completely avoidable. By simply reporting monthly, you can avoid the shock of hefty fines.
Need Help Staying on Track? US &CO is Here for You
At US & CO, we make it easy to stay compliant. Our team is ready to help you with tax filing, reporting, and more. Stop paying unnecessary penalties, and let us keep you on the right path. Contact us today and avoid penalties tomorrow!
Call/WhatsApp: 08056219998
Email: info@usc.com.ng