{"id":4411,"date":"2018-09-23T17:54:36","date_gmt":"2018-09-23T17:54:36","guid":{"rendered":"https:\/\/www.aziza.com.ng\/read\/?p=4411"},"modified":"2024-11-10T10:33:46","modified_gmt":"2024-11-10T10:33:46","slug":"tax-penalty-and-interest-rates-in-nigeria","status":"publish","type":"post","link":"https:\/\/www.aziza.com.ng\/read\/tax-penalty-and-interest-rates-in-nigeria\/","title":{"rendered":"TAX  PENALTY AND INTEREST RATES IN NIGERIA"},"content":{"rendered":"<p>ADMINISTRATION OF PENALTY AND INTEREST RATES REGIME UNDER\u00a0THE FEDERAL INLAND REVENUE SERVICE ESTABLISHMENT ACT, 2007<\/p>\n<p>1. As part of the efforts of the Federal Inland Revenue Service (FIRS) to promote\u00a0voluntary tax compliance among taxpayers, by providing clarity and certainty in tax\u00a0operations, the FIRS hereby wishes to publish for 2015, the approved rates of penalty and<br \/>\ninterests to be applied as sanctions on all outstanding unpaid taxes.<\/p>\n<p>&nbsp;<\/p>\n<h2>Read: <a href=\"http:\/\/www.aziza.com.ng\/register-company-business-registration-service-nigeria\/\"><span style=\"color: #0000ff;\">Company Registration Service<\/span><\/a><\/h2>\n<p>&nbsp;<\/p>\n<p>2. Consequent upon the recent meeting by the Monetary Policy Committee (MPC) of\u00a0the Central Bank of Nigeria during which the interest rate for the banking sector was\u00a0retained at 13% for the year 2015 and in pursuance to the provision of section 32(1) of<br \/>\nFIRS (Establishment) Act which provides that if any tax is not paid within periods\u00a0prescribed; \u201cthe tax shall carry interest at the prevailing Central Banks of Nigeria (CBN)\u00a0minimum rediscount rate, plus a spread to be determined by the Minister\u201d.<\/p>\n<p>3. The Federal Inland Revenue Service (FIRS) hereby notifies the general public,\u00a0taxpayers, tax consultants and tax officials that the approved rate of interest to be charged\u00a0on any unpaid taxes for the year 2015 is 15%, while the rate of penalty remains at 10%.<br \/>\nThe general public and all stakeholders are to note that the amount of addition (penalty\u00a0and interest) imposed under Section 32(1) (a) and (b) of FIRS (Estab) Act, 2007, will not\u00a0be deemed to be part of the tax paid, but shall be separately regarded as sanction.<\/p>\n<p>&nbsp;<\/p>\n<h2>FIRS Tax Payment Guidelines:<\/h2>\n<ul>\n<li>Taxpayers must be registered with relevant Tax Office nearest to them and obtain a Taxpayer Identification Number (TIN).<\/li>\n<li>Taxpayers should render appropriate tax returns.<\/li>\n<li>Taxpayers should obtain Assessment and Demand Notices where applicable.<\/li>\n<li>Taxpayers should remit all taxes to the approved collecting Banks in the various forms so designed for such purposes and obtain an Electronic Ticket (e-ticket).<\/li>\n<li>Taxpayers should present the e-ticket for the issuance of FIRS official receipts.<\/li>\n<li>Taxpayers can now process their Tax Clearance Certificate accordingly.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2>Read: <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.aziza.com.ng\/process-obtain-company-tax-clearance-certificate-nigeria\/\">How to process Tax Clearance Certificate<\/a><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p>Taxpayers are in two categories- Individuals and Corporations.<\/p>\n<ul>\n<li><strong>Individual taxpayers:<\/strong> this category of taxpayer is further sub-categorised for ease of administration into-\n<ul>\n<li>Resident individuals- taxpayers who reside in Nigeria for a period or periods amounting to 183 days or more in any 12 month period commencing in a calendar year and ending either within that same year or the following year.<\/li>\n<li>Non-resident individuals- this category include immigrants and any individual who is in Nigeria for some temporary purpose only and not with intent to establish residence.<\/li>\n<li>Individuals include a corporation sole and a body of indiduals but does not include a company, partnership, community, family, trustee or executor, or any body trustees of executors.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Corporations:<\/strong> any company incorporated under the Companies and Allied Matters Act.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<h2><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.verazadvocates.com.ng\/\">Need a Legal Firm or Lawyer in Nigeria<\/a><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><strong>Benefits\u00a0of Tax Payment in Nigeria<\/strong><\/p>\n<p>Nigeria as a country and indeed all socially responsible and law abiding individuals, groups, organizations and corporate citizens will derive valuable benefits from imbibing a culture of tax compliance. The benefits derivable include but are not limited to:<\/p>\n<ul>\n<li>Providing sustainable finance and funding for governance, public and social services and economic development.<\/li>\n<li>Promoting civic responsibility, patriotism by citizens and social responsibility by corporate citizens.<\/li>\n<li>Stimulating priority social and economic activities and sectors while discouraging less preferred ones.<\/li>\n<li>Bringing about the redistribution of wealth and bridging sharp disparities in living standards.<\/li>\n<li>Giving taxpayers the moral and legal right to demand for (thereby engendering) a culture of accountability.<\/li>\n<li>Serving as a gauge for measuring the level, growth and health of economic units and economic activities.<\/li>\n<li>Individuals and corporate organizations are conferred with definite benefits, rights and privileges in the system based on their tax compliance status.<\/li>\n<\/ul>\n<p>Tax compliance enables law abiding citizens to avoid the consequences, penalties and sanctions of non-compliance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ADMINISTRATION OF PENALTY AND INTEREST RATES REGIME UNDER\u00a0THE FEDERAL INLAND REVENUE SERVICE ESTABLISHMENT ACT, 2007 1. As part of the efforts of the Federal Inland Revenue Service (FIRS) to promote\u00a0voluntary tax compliance among taxpayers, by providing clarity and certainty in tax\u00a0operations, the FIRS hereby wishes to publish for 2015, the approved rates of penalty and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4609,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[2],"tags":[1609],"class_list":["post-4411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-tax-penalty-and-interest-nigeria"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.5 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>TAX PENALTY AND INTEREST RATES IN NIGERIA - Aziza Goodnews<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aziza.com.ng\/read\/tax-penalty-and-interest-rates-in-nigeria\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TAX PENALTY AND INTEREST RATES IN NIGERIA\" \/>\n<meta property=\"og:description\" content=\"ADMINISTRATION OF PENALTY AND INTEREST RATES REGIME UNDER\u00a0THE FEDERAL INLAND REVENUE SERVICE ESTABLISHMENT ACT, 2007 1. As part of the efforts of the Federal Inland Revenue Service (FIRS) to promote\u00a0voluntary tax compliance among taxpayers, by providing clarity and certainty in tax\u00a0operations, the FIRS hereby wishes to publish for 2015, the approved rates of penalty and [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.aziza.com.ng\/read\/tax-penalty-and-interest-rates-in-nigeria\/\" \/>\n<meta property=\"og:site_name\" content=\"Aziza Goodnews\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/web.facebook.com\/azizaNigeria\" \/>\n<meta property=\"article:published_time\" content=\"2018-09-23T17:54:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-10T10:33:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.aziza.com.ng\/read\/wp-content\/uploads\/2018\/12\/taxes-in-nigeria-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"650\" \/>\n\t<meta property=\"og:image:height\" content=\"350\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Aziza Nigeria\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Aziza Nigeria\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/tax-penalty-and-interest-rates-in-nigeria\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/tax-penalty-and-interest-rates-in-nigeria\\\/\"},\"author\":{\"name\":\"Aziza Nigeria\",\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/#\\\/schema\\\/person\\\/a29bc9acbb64b1e017ed494d99d5459d\"},\"headline\":\"TAX PENALTY AND INTEREST RATES IN NIGERIA\",\"datePublished\":\"2018-09-23T17:54:36+00:00\",\"dateModified\":\"2024-11-10T10:33:46+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/tax-penalty-and-interest-rates-in-nigeria\\\/\"},\"wordCount\":636,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/tax-penalty-and-interest-rates-in-nigeria\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/wp-content\\\/uploads\\\/2018\\\/12\\\/taxes-in-nigeria-2.jpg\",\"keywords\":[\"TAX PENALTY AND INTEREST NIGERIA\"],\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/tax-penalty-and-interest-rates-in-nigeria\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/tax-penalty-and-interest-rates-in-nigeria\\\/\",\"url\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/tax-penalty-and-interest-rates-in-nigeria\\\/\",\"name\":\"TAX PENALTY AND INTEREST RATES IN NIGERIA - 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