Tax Advisory Services | Services
Drudge Consulting offers a range of tax and services to assist taxpayers with tax planning, compliance, revenue negotiations and appeals. Our staff with accountancy, finance, legal, revenue training and experience, specialize in the following taxes.
1. Companies’ Income Tax (CIT) Compliance Services>Drudge Consulting has a well established tax practice which currently provides tax services to a variety of clients cutting across all the industry sectors of the Nigerian economy.
We provide the following CIT compliance services to companies:
- Preparation and filing of annual income tax returns – This entails the computation of income and education tax based on the signed audited financial statements of the Company and preparation of the returns to be filed with the Federal Inland Revenue Service (FIRS).
- Final returns – This includes advising on due dates for filing and final payments of CIT.
- Assessment – Representing the Company and corresponding with the FIRS on behalf of the Company (with the prior approval from the management of the Company in each instance), reconciling and agreeing notices of assessment where issued by the FIRS or lodging objections against incorrect assessments, and advising on final payments to be made.
- Liaison with FIRS – Dealing with other communication relating to the Company’s taxation affairs addressed to us by the FIRS or passed to us by the Company.
- Obtaining Tax Clearance Certificates (TCC)’s – Assisting the Company in obtaining TCC’s both for general purposes and remittance of technical fees (if any) and dividends to the Company.
- Withholding Tax Management - Assisting in applying for tax credits based on withholding tax credit notes obtained from customers and following up with the FIRS to update your Company’s tax position accordingly.
2. Withholding Tax (WHT) Compliance ServicesWithholding Tax in Nigeria is an advance payment of income taxes and is charged at a rate of either 5% or 10% depending on the nature of the transactions. It is deductible from payments made on qualifying transactions.
We provide the following WHT compliance services to companies:
- Reviewing of the Company’s invoices, ledgers, trial balance and monthly WHT schedules of payments to suppliers and contractors to ensure deductions are made at the appropriate rates.
- Reviewing payment receipts to ensure remittance of monthly deductions to the appropriate Revenue offices.
- Obtaining WHT receipts and credit notes in respect of remittances made.
- Liaising and corresponding with the Revenue Houses in respect of monthly WHT filings.
3. Value Added Tax (VAT) Compliance ServicesVAT is charged at the rate of 5% on invoices for goods and services, unless they are specifically exempt or zero rated. Claiming input VAT is important for the Company’s operations.
We provide the following VAT compliance services to companies:
- Review of monthly schedules and payment receipts.
- Filing of monthly VAT returns.
- Review and analysis of turnover, outgoing invoices and incoming invoices to determine appropriateness of VAT returns.
- Review of input and output VAT on fixed assets and operating expenses.
- Liaising and corresponding with the Revenue on any queries or issues affecting the Company in respect of the monthly returns filed.
- Assisting with making payments to the Revenue and claims for VAT credits.
- Highlighting potential liabilities resulting from inadequate compliance (if any) and proposing remediation measures.
4. Personal Income Tax Compliance Services
I. Initial Payroll Set-up
As expatriates would be supplied by an agency which would maintain an offshore payroll for the expatriates, a shadow payroll for the Company (in order to comply with PAYE and other statutory contributions) would be required. The Nigerian employees of the Company would also be on a payroll. We thus assist with payroll calculations and issuances. The first step in the process would be to set up the payroll by obtaining all personal and compensation data in relation to the Company’s employees.
We provide the following services to the Company with regard to setting up the initial payroll:
- Obtain salary data from the Company.
- Customize a payroll processing package to suit the Company’s specific requirements.
- Entry of employee details and compensation data into the payroll processing package.
II. Monthly Payroll Processing
We assist the processing of the monthly payroll for Companies. The following services are provided:
- Obtain details of any changes in employee salaries from the company.
- Update the payroll package to reflect any changes.
- Process the payroll for each month including computation of Pay-As-You-Earn (PAYE) tax and other statutory deductions.
- Generate payroll summary reports, designated bank advice, employee payslips and other required reports.
- Advise the Company on the due date for remittance of statutory liabilities.
III. Filing of Annual PAYE Tax Returns
Nigeria operates a PAYE system under which employees are taxed on a graduated scale. The basis for taxation in Nigeria is residence and the rules for determining residence are set out in Personal Income Tax Act (PITA). Under the PAYE scheme all employees that are resident in Nigeria are expected to file annual PAYE returns to the relevant State Internal Revenue Service (SIRS) office; and TCC’s are thereafter issued to the employees.
We provide the following services to Companies:
- Collating and reconciling all PAYE tax receipts evidencing remittances made during the year of assessment.
- Completing the “Employer’s Annual Declaration and Certificate” form (Form H1) and Remittance card (Form G).
- Ensuring that the forms are properly signed and stamped by the company before submitting them to the relevant SIRS office.
- Responding to issues raised by the SIRS.
- Assistance with processing TCC’s.
IV. Processing of Tax Deduction Cards (TDC)
We can provide the following services to your Company with regard to the processing of TDC’s:
- Processing the forms required to process the TDC’s.
- Completing the income section of the Form A and filing the completed forms with the relevant SIRS.
- Following up with the SIRS for processing of the TDC’s.
- Obtaining and forwarding each employee’s TDC to the Company.
- Updating the tax reliefs granted by SIRS in the payroll.
5. Capital Gain TaxCapital gains tax (CGT) is imposed at a rate of 10% on capital gains accruing from the disposal of any asset, corporeal or not, irrespective of where it is situated, and whether it is owned by an individual or corporate entity. Transactions which are subject to income tax are usually excluded from the scope of CGT, as are gains of exempt organizations and institutions.
Where assets situated outside Nigeria are disposed of by a non-Nigerian company, CGT is only charged in respect of that part of the gain which is brought into or received in Nigeria.
Generally, gains on transfer of securities, stock and shares are exempt from CGT.
6. Petroleum Profit TaxPetroleum Profit Tax is a major source of revenue for the Federal Government of Nigeria to meet its statutory obligations of ensuring the economic development of Nigeria.PPT is levied on the income of companies engaged in upstream petroleum operation. The rate is 85% for Joint Ventures and 50% for Production Sharing Contracts (PSC).
7. TRANSFER PRICINGDrudge Consulting Transfer Pricing Practice helps companies and their affiliates navigate the unique domestic and international tax consequences related to intercompany pricing issues. Our multidisciplinary team provides a range of planning, compliance, audit defense, and benchmarking services. In all cases, our professionals work to develop transfer pricing policies that are defensible, flexible, and in line with our clients’ overall tax planning strategies.
- Transfer of tangible products
- Development, transfer, or sharing of intellectual property
- Provision of beneficial services
- Extension of loans or financial arrangements involving intercompany funds