Tax Consultancy 

 

Our tax practice is made up of functional and industrial specialists. We advise and support clients on a wide range of tax and business issues, including restructuring of transactions for minimum tax advantage. Our core tax services include:

•  Personal Income Tax Management
•  Corporate Income Tax (CIT) and Education Tax (ET)
•  Comprehensive Integrated Tax Check;
•  Business/Transactional taxes (VAT and WHT)
•  Payroll Management Services
•  Tax Audit Support Services
•  Tax Advisory and Support Services
•  Technology Transfer Advisory Services with National Office for Technology Acquisition and Promotion (NOTAP)
•  Certificate of Acceptance for Fixed Assets
•  Certificate of Capital Importation (CCI)
•  Transfer Pricing
•  Pioneer status / Tax exemption

Personal Income Tax Management
Our services under Personal Income Tax Management are geared towards ensuring that the company efficiently meets its statutory obligations as provided in the Personal Income Tax Act.  We can assist your company to carry out the following:

•  Review the monthly payrolls for all employees and prepare a summarized annual schedule of Pay and Tax Deduction on a State by State basis.
•  File the returns with the relevant tax authority.
•  Prepare the Employer’s Certificate of Pay and Tax (Form H2) for each employee and deliver them for stamping and authentication by the company.
•  Following up on the process at the various tax offices and answering queries on behalf of the company, to ensure successful and timely release of the TCCs/e-TCCs.

Corporate Income Tax (CIT) and Education Tax (ET) 
The objectives of our corporate taxation services are to ensure that the tax liability in the audited accounts is correctly stated on a yearly basis and to facilitate the process of obtaining the companies tax clearance.

  • Preparation of the company’s income tax computations based on the draft financial statements and submission of tax returns to the Federal Inland Revenue Service, together with the statutory accounts
  • Advising the Company as to the appropriate basis for tax payments (if any), apply to and obtain the Revenue’s approval supporting the monthly instalment payments and promptly reminding the company of the due dates for filing and payments;
  • Advice your auditors on the appropriate tax provisions to be booked in the accounts.
  • Preparation and filing of annual income tax returns with the Federal Inland Revenue Service (FIRS).
  • Liaising with the Federal Inland Revenue Service on issues relating to notices of tax assessments; raising objections against incorrect assessments; and advising the Company on any final payments to be made;

Comprehensive Integrated Tax Check
We would undertake detailed review of the company’s compliance with the various tax laws for three (3) years preceding the current year. We can assist your company to carry out the following:

  • Conduct detailed review of the company’s operation and its tax affairs for an agreed period;
  • Ascertain the extent of compliance and/or non-compliance with the various tax laws;
  • Summarise potential penalties and interest which might have accrued on any under payment of tax;
  • Advise ways to minimise the tax exposures
  • Recommend ways for future best practices

Business/Transactional taxes (VAT and WHT)
Our specific services under VAT is to ensure proper and timely compliance with the VAT Act in the following areas:

Value Added Tax (VAT): 

  • General advice on VAT administration
  • Review of VATable income on which VAT is system-generated with a view of determining the level of adequacy
  • Review of VATable income on which VAT is manually-generated with a view of determining the level of adequacy
  • Review of VAT payable on off-shore contracts with a view to determining that such VAT are deducted at source and remitted by the company on behalf of non-resident entities
  • Monthly review of VAT returns alongside management accounts to ensure that VAT from all relevant sources has been included
  • Monitoring VAT remittances and collection of revenue receipts

Withholding tax
The Nigerian withholding tax system makes it obligatory for companies to deduct at source from most business transactions. This could lead to the overpayment of tax by companies. Such excess tax payment is allowed to be used to offset the company’s future tax liabilities or refunded in cash to the company by the tax authority, depending on the preference of the taxpayer.

Our work in this regard would include the following:

  • Review of monthly management accounts and advising management on the withholding tax payable to relevant tax authorities for the month
  • Collating WHT credit notes obtained from the various clients of the company.
  • Determining and advising management on any shortfall in withholding tax deducted from service providers in relation to withholding tax payable for the month
  • Monitoring withholding tax remittances and collection of revenue receipts and credit notes from tax authorities.

Payroll Management Services
Our service under payroll management is aimed at taking the burden of the payroll function off the chest of our clients so that they are able to focus on their core business activity. The service is also geared towards ensuring efficiency in payroll calculations and statutory deductions (tax, pension, NHF, etc) administration in a manner that eliminates the risks of missing deadlines and suffering the attendant legal consequences, while also ensuring the confidentiality of personnel emolument information both within and outside the organization.

We can assist your company to carry out the following:

  • Preparation of salary payroll.
  • Preparation of pay slips for employees.
  • Rendering of PAYE to the relevant authorities.
  • Filing of Payroll tax returns.
  • Collection of Tax Clearance Certificate for Staffs.

Tax Audit Support Services
We can assist your company to carry out the following:

  • Reviewing the company’s tax filings alongside the audited financial statements and the underlying management accounting records for the relevant years
  • Reviewing and collating necessary documentations to back up the accounting entries
  • Reporting to the company the potential tax liability from the tax audit
  • Presenting the company’s records to the tax inspectors
  • Physical presence during the duration of the audit to liaise with the tax inspectors from FIRS on behalf of the company
  • Responding on behalf of the company to queries/questions raised by the tax inspectors on the records of the company
  • Liaising and monitoring the company’s tax audit file with the FIRS
  • Reviewing and agreeing the tax liability of the company with FIRS
  • Assisting the company to work-out an installment payment plan for any established tax liabilities.

Tax Advisory and Support Services
In light of the paradigm shift in the global markets and economy, TBS Professional Services provides financial management advice through their experienced partners, understanding of costing and management accounting systems to strengthen operational and financial structures of our clients.

This includes identifying appropriate operational and financial structures, determining funding requirements, providing cash flow projection, feasibility study, accounting manual, documented financial analysis, preparation of business plans, and facilitating finance for projects.

Technology Transfer Advisory Services with National Office for Technology Acquisition and Promotion (NOTAP)
Every contract or agreement involving the transfer of foreign technology to a Nigerian company must be registered with the NOTAP within sixty (60) days of execution or conclusion of the agreement. An agreement involves transfer of technology if, in the opinion of NOTAP, it is wholly or partially connected with any of the following matters:

  • The use of trade marks
  • The right to use patented inventions,
  • The supply of technical expertise in the form of the preparation of plan, diagrams, operating manuals or any other form of technical assistance of any description whatsoever,
  • The supply of basic or detailed engineering,
  • The supply of plants and machinery, and
  • The provision of operating staff or managerial assistance and the training of personnel.

Registration with NOTAP is necessary, as non-registration will frustrate transfer of any fees or payment due under the contract to the account of the aliens outside Nigeria. We can assist your company to register your contract or agreement involving the transfer of foreign technology to Nigeria with NOTAP by:

  • Reviewing the agreements to identify the legal implications in Nigeria
  • Structuring your company’s agreements to comply with NOTAP guidelines and other exchange control regulations
  • Processing the application to NOTAP on behalf of your company
  • Following up on the collection of the certificate of registration and certified copies of the registered contracts

Certificate of Acceptance for Fixed Assets
Under the provisions of the Industrial Inspectorate Act (Cap 180 LFN), a company is required to support fixed assets acquired in any financial year with acceptance certificate issued by the Inspectorate Division of the Federal Ministry of Industries. The tax authorities are empowered to withdraw capital allowances claimed on such fixed assets where there are no acceptance certificates to support them.

We therefore liaise with the Federal Ministry of Industry and assist clients in annual compilation and remittance of relevant returns and obtain fixed assets acceptance certificates on their behalf.

  • Preparing analysis of addition to fixed assets – we will prepare relevant analysis of additions to fixed assets that qualifies for Acceptance Certificate in the specified formats;
  • Collating relevant documentary evidence of purchase – we will collate relevant title documents and other evidence of purchase;
  • Submitting relevant documents to the authority – we will submit all the necessary documents and forms required to back up the application to the relevant government agency;
  • Supporting the company during verification – we will provide on-the-spot support to the company during verification exercise that may be carried out by the authority in connection with the application;
  • Attending to other post-verification issues – we will respond to issues that may arise after or during the verification exercise;
  • Obtaining Acceptance Certificate – our responsibility will terminate only after collecting the Acceptance Certificate from the authority and submitting same to the company.

Certificate of Capital Importation (CCI)
Certificate of Capital Importation is aimed at providing customers with statutory evidence of capital inflow/investment into a Nigerian company. It legitimizes and facilitates the repatriation of dividends and capital to the foreign investor.

CCI’s are Central Bank of Nigeria (CBN) certificates issued by banks for importation of cash (foreign currency Inflow) for investment as Equity or Loan, and also for importation of machinery and equipment for investment as Equity or Loan. We can assist your company to secure certificate of capital importation from the Central Bank of Nigeria:

  • Provide an overview of the requirements of application for a certificate of capital importation approval;
  • Collate, review and discuss requisite documents as required by the
  • Central Bank of Nigeria (“CBN”);
  • Prepare draft application for discussion and approval;
  • Prepare final application and submit to National Investment Promotion Commission (NIPC) in Abuja; and
  • Provide regular feedback on status of application
  • Subject to CBN’s approval, our final task will be to process and obtain the certificate of capital importation.

Transfer Pricing
The Nigerian government launch the Income Tax (Transfer Pricing) Regulation No 1 through the Federal Inland Revenue Service (FIRS) with effect from August, 2012.

The regulations cover transactions between connected legal entities both locally and internationally and require related or connected entities to prove that transactions between them are at arm’s length.

In other to help our numerous clients in achieving this compliance requirement by the FIRS, we provide the following Transfer Pricing services:

  • Transfer Pricing Planning
  • Transfer Pricing Implementation and Monitoring
  • Transfer Pricing Documentation and Compliance
  • Filing of Transfer Pricing Returns

Pioneer status / Tax exemption
The objective of the pioneer status relief is to grant corporate income tax exemption to companies involved in certain industries:

  • That are not being carried on in Nigeria or are not being carried out on a suitable scale to the economic requirements of the country;
  • That have favourable prospects of further development in Nigeria of such industry; or
  • If the industry or product is deemed to be beneficial for public interest.

The incentives granted under the Industrial Development (Income Tax Relief) Act (IDITRA) include:

  • Exemption of profits from Companies Income Tax during the tax holiday.
  • The tax free period is for three years initially, and can be extended for another two years subject to satisfactory performance of the business.
  • Exemption of dividend distributed from pioneer profits from withholding tax.
  • Capital allowances and tax losses are suspended during the pioneer period and available to be utilised against taxable profit after the pioneer period.

A service charge of 2% based on projected tax savings is payable to the Nigerian Investment Promotion Commission during application – [Pioneer Status Incentive Regulations 2014].

We can assist your company to secure pioneer status Certificate from the Nigeria Investment Promotion Commission, (NIPC).

How can we help you?

To discuss how our team can help your business achieve true results, call today to schedule an appointment!

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