Chai! Naija don enter new waka as dem don implement tax reform wey fit scatter ground for business sector o!
For this new tax regime, salary earners wey dey earn below N800,000 go dey enjoy small relief. Dem go fit see their take-home pay increase small-small wey go make dem smile at the end of January. But no be only dem wey go dey happy o, VAT and Withholding Tax matter don enter serious matter wey businesses gatz face sharp-sharp!
As per the new law, individuals wey dey earn N800,000 or less, dem dey exempt from tax. But for those wey dey earn pass that one, tax go dey rise wey fit reach 25%. Na serious level be this! And no forget say VAT don change too; now, if you spend money for services and fixed assets, you fit claim VAT back. This one e sweet so!
Dem don also introduce e-invoicing wey go make VAT collection and reporting easier, but shay you fit flow with dem rules? If your company no gree comply, wahala dey! Dem fit give you penalty wey dey reach 40% on wetin you suppose deduct. No be small matter o!
One big man from PwC, Kenneth Erikume, talk say payroll matter na urgent matter wey every business gatz check before end of January. Na so dem go fit survive this tax wahala. He mention sey any money wey pass N50 million go don dey taxed na 25%, wey go cause many sabi folks to dey check their pockets twice. So, everybody wey earn below N25 million go fit smile small because dem go dey see increase for their pay, but for those wey carry big salary, e go tough!
Erikume also talk say the new system go dey pain for businesses wey no fit follow VAT and WHT rules. We wan dey collect tax as we dey produce, so businesses gatz upgrade their system make dem fit cash in on the new VAT benefits. Some companies dey see like N500 million increase annually from VAT adjustments. E be like say money dey flow like river if you fit do am right!
But make I clear you, e no good to go collect service from vendors wey no get Tax Identification Number (TIN). If you no follow this rule, government fit vex give you fine wey dey reach N5 million. Na wetin dem dey call ‘serious matter!’ So, abeg, make your business dey check vendors well before you do any transaction with dem.
As tax errors dey come with big penalties, e go better make your system dey automated. No use manual process! If you dey do am wrong, you go pay the price big time! Automation go help your team flow well and avoid wahala.
Also, remember say for petroleum and mining sector, bad move fit cost you highly! Dem go charge una daily fines and interests wey go ruin your business quick-quick. That one fit make you dey sweat like outsider. Make sure sey una dey comply with all laws if you no wan enter trouble.
Finally, my people, dis new tax regime na wake-up call for Naija businesses. Make sure sey you dey follow all these new rules well well. If you fit do am right, your business go shine bright like Lagos nightlife. Abeg, no sleep o! Tax compliance na key to success!
Do you have a news tip for NNN? Please email us at editor @ nnn.ng
