Investment Opportunities in Kwara State

Continued from  last Monday Edition

7. Register for income tax and VAT at the Federal Inland Revenue Service

Entrepreneurs can register for both corporate income tax and VAT at the new Integrated Tax Office. For corporate income tax, the Federal Inland Revenue Service (FIRS) will require the applicant to complete tax registration forms. The new company registers at a federal tax office nearest to its place of business or registered office. A letter is written to the tax authority applying for a tax clearance certificate. A form obtained from the tax office is filled and the following documents submitted with it:

1. Taxpayer registration input form (TRIF/2006/001 COYS);
2. Completed FIRS questionnaire;
3. Copy of memorandum and articles of association;
4. Names and addresses of directors;
5. Copy of the certificate of incorporation;
6. Name, address of tax adviser;
7. Letter of appointment of tax adviser and a letter of acceptance;
8. The date the company commenced business;
9. Names, addresses and mobile numbers of major promoters and the chairman of the company, including their email addresses;

1. Other sources of income of the chairman and the promoters of the company;

1. Name and addresses of the principal officers of the company including the chairman, managing director, legal adviser and accountant.

The application forms must be in triplicate and the original certificate of incorporation must be presented for ‘sighting’ by the controller before registration can be completed. Upon receipt of the completed taxpayer registration input form and all documents, a tax reference number is allocated. An application must be filed for the tax clearance certificate. Its issuance is not automatic.

The fees for the tax clearance issuance are as follows: for newly registered companies within 6 months of incorporation: no fee; for companies that are yet to commence business and show up for registration after 6 months of incorporation, if they request for tax clearance certificate a pre-operation levy of NGN 25,000 is payable for the first time and NGN 20,000 is payable for subsequent years until it files a notice of commencement of business.

Companies required to register for VAT complete the VAT registration form (VAT Form 001, obtainable free of charge from all FIRS offices) and return it to the integrated tax office, which will issue a taxpayer identification number (TIN). Companies required to register for VAT must do so within 6 months from the date of company incorporation.

Since the registration for corporate income tax and VAT are done in the same place; one Tax Identification Number (TIN) is issued to companies for all federal taxes.

Time to  complete: 3 days

Associate Cost: No cost

To be continued