Tax Compliance and Advisory
Tax Planning & Consultation
The objectives of our Tax Planning and Consultation service is to analyse the financial situation or plan of a business in order to ensure that all elemants within the business work together in order to allow the business pay the lowest taxes possible and premissible by law.
Corporate Income Tax (CIT, PPT, EDT)
The objectives of our corporate taxation services are to ensure that the tax liability in the audited accounts is correctly stated on a yearly basis and to facilitate the process of obtaining the company’s tax clearance.
Key aspects of our services are as follows:
- Computing annual company capital allowances and tax liabilities;
- Making annual returns to the tax authorities;
- Obtaining corporate tax clearance certificates;
- Tax advisory services including statutory responsibilities in respect to withholding tax;
- Processing of certificates of acceptance for all capital expenditure to be able to claim capital allowance;
- Generally advising on other levies and taxes due from companies across sectors.
Transaction Tax (VAT & WHT)
Nigeria operates a VAT system that is governed by the VAT Act of 1993 (amended up to 2007). The law requires all businesses operating in Nigeria to register for VAT and to charge VAT on all relevant transactions, and collect an account for the VAT charged to FIRS on a monthly basis.
Nigeria also operates a Withholding Tax (WHT) system based on specific provisions in the various income tax laws. Businesses are mandated to deduct WHT on behalf of the government at the point of payment for qualifying services.
Our service in this regard is to ensure proper and timely compliance with the VAT Act and WHT system on routine compliance and occasional services in the following areas:
- Proper keeping of VAT records and filing of VAT returns on a monthly basis;
- Remitting VAT charged and claiming refund where applicable;
- Liaison with the integrated Tax office in respect of any VAT issues raised;
- Computation and review of monthly WHT deductions against payment vouchers;
- Advice on WHT payable;
- Guide appointed officers on preparation of appropriate documents for payment of WHT to the respective tax Authorities.
Personal Income Tax
Our personal income taxation services are geared toward ensuring that employees are subjected to the minimum possible taxation, through innovative income distribution schemes. Further, we would handle personal income taxation matters on behalf of employees in the following areas:
- Staff salaries structuring and PAYE tax planning;
- Registering the company with the relevant state Tax Office for the purpose of PAYE;
- Obtaining personal income tax forms and remittance cards for employees;
- Determining the correct amount of tax payable by each employee and remitting same to the tax office;
- Obtaining tax clearance certificates for employees;
- Liaison with relevant state tax authorities and consultants during PAYE and Withholding tax audits;
- Filing of annual tax returns;
- Filing of Directors Annual returns and processing Tax Clearance Certificates.
The Nigerian government, through the Federal Inland Revenue Service (FIRS) joined the rest of the world by issuing its transfer pricing regulations known as the Income Tax (Transfer Pricing) Regulation No 1, 2012 with effect from August 2012. The objectives of the regulations include:
- Reduction of the risk of economic double taxation;
- Provision of level playing ground between MNCs and local companies in Nigeria;
- Provision of certainty of transfer pricing treatment in Nigeria;
- Elimination of cross border tax evasion;
- The regulations cover dealings between related parties and/or persons both locally and internationally;
- The regulations require related or connected entities to prove that transactions between them are at arm’s length.
Formal Tax Opinions and Tax rulings from the Tax Authorities
We appreciate that businesses periodically need to make expansion or collaboration decisions that could significantly impact their immediate or future tax costs. Under these circumstances, it is prudent to have an expert review these transactions and or agreements and advise on the best structure to adopt. Also, in the execution of such contracts or even in day-to-day transactions, businesses often find themselves disagreeing with the position of the tax authorities on their liabilities and or penalties. At Kreston Pedabo, we recognise the need for expert representations should clients decide to pursue these, and we use our vast working experience and knowledge of the tax laws to advise and in the eventuality of a Tax Appeal Tribunal represent our clients for the best possible outcome.
Agreement Reviews & Design of Transaction Structures
We recognise that businesses are always looking to expand their operations and enter into agreements in a view to improving their performance, such agreements could have significant impact on the Company’s immediate or future tax costs. We offer the service of reviewing such agreements (while in negotiations) vis-a-vis their corproate structuring and tax exposures, and advising on more tax effective structures to implement to protect the company’s interest in same.
Transactional Regulatory Approvals – Processing of Acceptance Certificates, Pioneer Status Incentive, NOTAP, etc.
We recognise that every business is once in a while faced with the need to make decisions that could significantly impact the Company’s immediate or future tax costs. These decisions could range from the very complex expansion projects such as mergers and acquisitions, fund-raising, etc., to the more frequent ones like acquisition of new equipment, sundry contracting, and the likes. Kreston Pedabo provides transational advisory and aupport with regulatory approvals with respect to Certificates of Fixed Acceptance (CAFA), Pioneer Status Incentives (PSI), the National Office for Technology and Acquisition and Promotion (NOTAP), to mention a few.