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 |
|
|
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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