{"id":678,"date":"2018-09-21T00:36:00","date_gmt":"2018-09-21T00:36:00","guid":{"rendered":"https:\/\/kobotalk.com\/?p=678"},"modified":"2025-07-04T19:46:17","modified_gmt":"2025-07-04T19:46:17","slug":"7-type-of-taxes-in-nigeria-every-entrepreneur-must-know-about","status":"publish","type":"post","link":"https:\/\/kobotalk.com\/BLOG\/7-type-of-taxes-in-nigeria-every-entrepreneur-must-know-about\/","title":{"rendered":"7 Types of Taxes In Nigeria Every Entrepreneur Must Know About"},"content":{"rendered":"Reading Time: <\/span> 6<\/span> minutes<\/span><\/span>
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All over the world, taxation is an essential part of doing business.\u00a0 So in this post, I will highlight 7 types of taxes in Nigeria every entrepreneur must know about.<\/p>\r\n\r\n\r\n\r\n

Not paying attention to these\u00a0 taxes means inviting the tax man’s troubles.<\/p>\r\n

You see, a\u00a0 good number of small and medium business operators do not understand tax matters and how these affect their businesses, hence the high level of noncompliance.<\/p>\r\n

A certain study showed that over 80 percent of small businesses in Nigeria don\u2019t pay taxes. \u00a0Some only realize the need to pay tax when their business premises are sealed up by the tax officials.\u00a0 Or when they face prosecution for tax related offences.\u00a0<\/p>\r\n

A large number of others remember to pay tax only when they are unable to bid for contracts because they do not have tax clearance certificates.<\/p>\r\n\r\n\r\n\r\n

It need not be like this!<\/p>\r\n\r\n\r\n\r\n

Understanding how tax issues affect your business and complying with the provisions will save you many hassles.\u00a0<\/p>\r\n\r\n\r\n\r\n

WHAT IS TAX?<\/strong><\/h2>\r\n\r\n\r\n\r\n

Tax is a compulsory levy imposed by the government of a country on its citizens.<\/p>\r\n\r\n\r\n\r\n

Two operating words or phrases jumps out if this definition: compulsory levy<\/strong> and citizenship.<\/strong>\u00a0 Payment of Tax is a compulsory obligation every citizen owes to the state.\u00a0 And citizen here encompasses both natural and corporate persons.<\/p>\r\n\r\n\r\n\r\n

The moment you registered your business, you have created a corporate citizen. Companies thus have rights and obligations of natural persons.\u00a0 These rights include: the right to own property, the right to sue and be sued.\u00a0<\/p>\r\n

They also have obligations as natural persons such as duty to pay taxes. And failure to do so is a financial crime.\u00a0<\/p>\r\n\r\n\r\n\r\n\r\n\r\n

TAX AVOIDANCE AND TAX EVASION<\/b><\/h2>\r\n\r\n\r\n\r\n

There are two ways the tax man views the failure to pay tax .\u00a0 These are tax evasion<\/strong> and tax avoidance<\/strong>.<\/a><\/p>\r\n\r\n\r\n\r\n

Tax evasion is a deliberate misrepresentation of material facts about a taxable person’s income in order not to pay tax at all or pay little.\u00a0<\/p>\r\n

Such acts will include but not limited to:<\/p>\r\n