State Government Taxes for Micro, Small and Medium Enterprises (MSMEs)

By Deloitte Nigeria | 2 min read
17th July 2017
State Government Taxes for Micro, Small and Medium Enterprises (MSMEs)

The administration of taxes in Nigeria is vested in the various tax authorities at each tier of government, depending on the type of taxes under consideration.

In order to ease the difficulties and challenges faced by the tax payers as a result of multiplicity of taxes at different levels and create an investor-friendly tax regime, the Federal Government, on May 26 2015, enacted the Taxes and Levies Approved List for Collection Act called Schedule to the Taxes and Levies (Approved List for Collection) Act (Amendment) Order, 2015 to spell out the taxes and levies that can be collected by the different tiers of government.

In this article, we will be focusing on taxes and levies collected and administered by State Board of Internal Revenue.

Taxes/levies due to the State Government

There are twenty-five (25) taxes/levies administered by the relevant State Board of Internal Revenue (SBIR) as highlighted below:

S/N

Taxes and levies

Frequency

Applicability

Rates

1

Capital gains tax

Annually

Individuals

10% on capital gains

2

Development levy

Annually

Individuals

Flat rate - ?100 per annum

3

Business premises registration fee

Annually

Companies/Individuals

  • Urban areas -?10,000 for registration, ?5,000 for renewal;
  • Rural areas - ?2,000 for registration, ?1,000 for renewal

4

Right of occupancy fees on lands

Annually

Property owner/occupier

Varies

5

Property tax

Annually

Property owners/ Occupiers

Varies

6

Signage and mobile advertisement

Annually

Companies/Individuals

Varies

7

Slaughter or Abattoir fees

Annually

Slaughter houses

Subject to assessment by relevant SBIR

8

Mining, milling and quarrying fee

Annually

Companies

Subject to assessment by relevant SBIR

9

Personal income tax

Monthly

Individuals

Graduated rate from 7% to 24%

10

Withholding tax

Monthly

Individuals

Ranging from 5% to 10%

11

Market taxes and levies

Monthly

Individuals

Subject to assessment by relevant SBIR

12

Social services contribution levy

Monthly

Companies/Individuals

Subject to assessment by relevant SBIR

13

Stamp duties

Per transaction

Individuals

Varies per Rate applied based on type of instrument

14

Road taxes

Per transaction

Road users

Varies per Subject to the type of payment

15

Land use charge

Per transaction

Property owner/occupier

Varies

16

Entertainment tax

Per transaction

Individuals

Rate of 5%

17

Naming of street registration fees in the state capital

Per transaction

Individuals

Subject to the authority assessment by relevant SBIR

18

Pools betting and lotteries, gaming and casino taxes

Per transaction

Casino houses

Subject to assessment by relevant SBIR

19

Fire service charge

Per transaction

Companies/Individuals

Varies

20

Economic development levy

Per transaction

Individuals

Subject to assessment by relevant SBIR

21

Infrastructure maintenance charge

Per transaction

Companies

Varies

22

Produce sales tax

Per transaction

Companies/Individuals

produced

23

Animal trade tax

Per transaction

Animal traders

Subject to the animal trade

24

Environmental (ecological) fee

Per transaction

Companies

Subject to assessment by relevant SBIR

25

Hotel, restaurant or event center consumption tax

Per transaction

Consumer

Subject to assessment by relevant SBIR



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© 2017 Akintola Williams Deloitte


Deloitte Nigeria
Deloitte & Touche is the Deloitte Touche Tohmatsu Limited (DTTL) member firm in Nigeria and the oldest indigenous professional services firm in Nigeria. The firm was established in 1952 by Mr. Akintola Williams, FCA, CFR, CBE, the doyen of the accountancy profession in Nigeria. Through astute management, the member firm has grown in size and scope of services to become one of the largest global professional services organisations in Nigeria, with offices in Lagos, Abuja and Port Harcourt. The firm currently provides audit, tax, consulting, accounting and financial advisory, corporate finance, and risk advisory services, to public and private clients spanning multiple industries. www.deloitte.com.ng
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