Tax & Compliance Glossary

A sole proprietorship registration with CAC. The simplest business structure in Nigeria, suitable for individuals running a business under a trade name.

The government agency responsible for registering and regulating companies and business names in Nigeria. All businesses must register with CAC to operate legally.

The primary legislation governing company registration and regulation in Nigeria. The 2020 update introduced single-member companies, electronic filing, and other modernizations.

A tax levied on the profits of incorporated businesses in Nigeria. The standard rate is 30% for large companies, 20% for medium companies, and 0% for small companies with turnover below N25 million.

The federal agency responsible for assessing, collecting, and accounting for tax revenue in Nigeria. FIRS administers CIT, VAT, and other federal taxes.

The revenue service of Ghana responsible for the assessment and collection of taxes. It administers income tax, VAT, and customs duties in Ghana.

A type of company typically used for non-profit organizations, clubs, and associations. Members guarantee to contribute a nominal amount if the company is wound up.

A federal agency that promotes and encourages the acquisition of skills in industry and commerce. Employers with 5 or more employees must contribute 1% of annual payroll.

The national revenue collection agency of Kenya responsible for the assessment, collection, and accounting of all revenues due to the Kenyan government.

A company where the liability of members is limited to their shareholding. The most common business structure for SMEs in Nigeria, requiring a minimum of one director and one shareholder.

The agency responsible for IT development in Nigeria. Companies with annual turnover above N100 million are required to contribute 1% of profit before tax to NITDA.

Provides social insurance protection to workers in the private sector. Employers contribute 1% of employee monthly payroll to the fund.

Comprehensive tax reform legislation that consolidates and modernizes Nigeria's tax framework, streamlining administration and broadening the tax base.

A method of income tax collection where employers deduct tax from employees' salaries and remit directly to the relevant state tax authority. Rates range from 7% to 24% based on income brackets.

The regulatory body for the pension industry in Nigeria. Under the Pension Reform Act, employers with 3 or more employees must contribute 10% of employees' monthly emoluments, with employees contributing 8%.

A unit under the Federal Ministry of Industry, Trade and Investment that registers and monitors Designated Non-Financial Businesses and Professions (DNFBPs) for anti-money laundering compliance.

A unique identifier assigned to individuals and businesses for tax purposes by FIRS or state tax authorities. Required for opening bank accounts, filing tax returns, and doing business with the government.

A consumption tax of 7.5% levied on the supply of goods and services in Nigeria. Businesses with annual turnover above N25 million are required to register, charge, and remit VAT.