Monday, October 20, 2014

NGOs in Nigeria Must Pay Tax, Government Insists

Mr. Osy Chuke, explained that the only tax which such organizations was exempted was income tax but that if they got involved in activities that yielded profit, taxes had to be paid to the federal government from such profits, adding that personal income taxes of their staff had to be paid to the government.
“Nigerian tax laws do not necessarily exempt NGOs from paying taxes.  Rather they recognise NGOs as basically no-for-profit entities, which are therefore exempted from paying Income Tax.
“Where, however, an NGO engages in activities from which it derives profits, then it will be required to pay taxes on such profits, like any other profit-making entity.
“Also, other than income taxes, NGOs are not exempt from paying taxes suck as Value Added Tax, VAT, on goods and services.  They are also required to deduct and pay over Personal Income Tax from the salaries and allowances paid to their employees, amongst others,” he said
- See more at: http://www.vanguardngr.com/2014/10/ngos-must-pay-tax-firs-insists/#sthash.mI6TAvqF.dpuf
Mr. Osy Chuke, explained that the only tax which such organizations was exempted was income tax but that if they got involved in activities that yielded profit, taxes had to be paid to the federal government from such profits, adding that personal income taxes of their staff had to be paid to the government.
“Nigerian tax laws do not necessarily exempt NGOs from paying taxes.  Rather they recognise NGOs as basically no-for-profit entities, which are therefore exempted from paying Income Tax.
“Where, however, an NGO engages in activities from which it derives profits, then it will be required to pay taxes on such profits, like any other profit-making entity.
“Also, other than income taxes, NGOs are not exempt from paying taxes suck as Value Added Tax, VAT, on goods and services.  They are also required to deduct and pay over Personal Income Tax from the salaries and allowances paid to their employees, amongst others,” he said
- See more at: http://www.vanguardngr.com/2014/10/ngos-must-pay-tax-firs-insists/#sthash.mI6TAvqF.dpuf
Mr. Osy Chuke, explained that the only tax which such organizations was exempted was income tax but that if they got involved in activities that yielded profit, taxes had to be paid to the federal government from such profits, adding that personal income taxes of their staff had to be paid to the government.
“Nigerian tax laws do not necessarily exempt NGOs from paying taxes.  Rather they recognise NGOs as basically no-for-profit entities, which are therefore exempted from paying Income Tax.
“Where, however, an NGO engages in activities from which it derives profits, then it will be required to pay taxes on such profits, like any other profit-making entity.
“Also, other than income taxes, NGOs are not exempt from paying taxes suck as Value Added Tax, VAT, on goods and services.  They are also required to deduct and pay over Personal Income Tax from the salaries and allowances paid to their employees, amongst others,” he said
- See more at: http://www.vanguardngr.com/2014/10/ngos-must-pay-tax-firs-insists/#sthash.mI6TAvqF.dpuf

Ngozi Okonjo-Iweala, Coordinating Minister of the Economy
Non-governmental organisations in the country are not exempted from paying taxes, the Federal Inland Revenue Service has declared.

According to the service, insinuations that NGOs, as not-for-profit organisations, are exempted from paying taxes are incorrect.

Speaking to members of different NGOs during a sensitisation meeting in Abuja on Thursday, the Acting Executive Chairman, FIRS, Mr. Kabiru Marshi, said “Nigerian tax laws do not necessarily exempt NGOs from paying taxes.

“As an emerging economy, Nigeria is moving away from resource dependence and focusing more on sustainable sources of revenue, especially taxation. We cannot, therefore, afford to leave behind any taxpayer segment, neither can any group of taxpayers seek to exempt themselves from contributing to the development of Nigeria through paying taxes, except as permitted by law.”


Marshi, who was represented by the Coordinating Director, Modernisation Group, FIRS, Mr. Ossy Chuke, stated that where an NGO engaged in activities from which it derived profit, it would be required to pay taxes on such profits like any other profit-making entity.

“NGOs are not exempted from paying taxes such as Value Added Tax on goods and services. They are also required to deduct and pay personal income tax from salaries and allowances paid to their employees, among others.” 

Mr. Osy Chuke, explained that the only tax which such organizations was exempted was income tax but that if they got involved in activities that yielded profit, taxes had to be paid to the federal government from such profits, adding that personal income taxes of their staff had to be paid to the government.

“Nigerian tax laws do not necessarily exempt NGOs from paying taxes.  Rather they recognise NGOs as basically no-for-profit entities, which are therefore exempted from paying Income Tax.
“Where, however, an NGO engages in activities from which it derives profits, then it will be required to pay taxes on such profits, like any other profit-making entity.


Mr. Osy Chuke, explained that the only tax which such organizations was exempted was income tax but that if they got involved in activities that yielded profit, taxes had to be paid to the federal government from such profits, adding that personal income taxes of their staff had to be paid to the government.
“Nigerian tax laws do not necessarily exempt NGOs from paying taxes.  Rather they recognise NGOs as basically no-for-profit entities, which are therefore exempted from paying Income Tax.
“Where, however, an NGO engages in activities from which it derives profits, then it will be required to pay taxes on such profits, like any other profit-making entity.
“Also, other than income taxes, NGOs are not exempt from paying taxes suck as Value Added Tax, VAT, on goods and services.  They are also required to deduct and pay over Personal Income Tax from the salaries and allowances paid to their employees, amongst others,” he said
- See more at: http://www.vanguardngr.com/2014/10/ngos-must-pay-tax-firs-insists/#sthash.mI6TAvqF.dpuf
Marshi said the FIRS would provide an elaborate explanation detailing the requirements of various organisations in the country with respect to the payment of taxes.

The FIRS boss also said that the service had centralised all NGO tax issues in its Medium Tax Office in Abuja.

This, he said, was to enable it better identify and monitor NGOs for tax purposes, improve its turnaround time on NGO issues and provide bespoke services to them.

“A more detailed presentation will be made on the tax obligations of the NGOs so that there is greater clarity on the part of taxpayers, tax officers, tax professionals and, of course, NGO operators,” he added.

Marshi told members of the NGOs that their tax files were now domiciled in the MTO and any such files yet to be sent to the office would be transferred shortly.

According to him, the sensitisation programme will “provide information on what types of entities constitute NGOs so that the FIRS can make clear which files are to be transferred to the MTO.”

Mashi, who was represented by the Coordinating Director of Modernisation, Mr. Osy Chuke, explained that the only tax which such organizations was exempted was income tax but that if they got involved in activities that yielded profit, taxes had to be paid to the federal government from such profits, adding that personal income taxes of their staff had to be paid to the government.
“Nigerian tax laws do not necessarily exempt NGOs from paying taxes.  Rather they recognise NGOs as basically no-for-profit entities, which are therefore exempted from paying Income Tax.
“Where, however, an NGO engages in activities from which it derives profits, then it will be required to pay taxes on such profits, like any other profit-making entity.
“Also, other than income taxes, NGOs are not exempt from paying taxes suck as Value Added Tax, VAT, on goods and services.  They are also required to deduct and pay over Personal Income Tax from the salaries and allowances paid to their employees, amongst others,” he said.
He disclosed that a Medium Tax Office had been opened in Abuja to handle NGOs’ tax issues as part of the organisation’s move to create specialized offices for various taxpayer groups.
In an opening address, the Coordinating Director, Field Operations Group, Mr. Ajayi Bamidele, noted that the contributions of NGOs were recognised in the society as they undertook shared responsibility with government for social and development needs of the country, thereby relieving the financial burden which otherwise should have been government’s responsibility.
- See more at: http://www.vanguardngr.com/2014/10/ngos-must-pay-tax-firs-insists/#sthash.mI6TAvqF.dpuf

Mashi, who was represented by the Coordinating Director of Modernisation, Mr. Osy Chuke, explained that the only tax which such organizations was exempted was income tax but that if they got involved in activities that yielded profit, taxes had to be paid to the federal government from such profits, adding that personal income taxes of their staff had to be paid to the government.
“Nigerian tax laws do not necessarily exempt NGOs from paying taxes.  Rather they recognise NGOs as basically no-for-profit entities, which are therefore exempted from paying Income Tax.
“Where, however, an NGO engages in activities from which it derives profits, then it will be required to pay taxes on such profits, like any other profit-making entity.
“Also, other than income taxes, NGOs are not exempt from paying taxes suck as Value Added Tax, VAT, on goods and services.  They are also required to deduct and pay over Personal Income Tax from the salaries and allowances paid to their employees, amongst others,” he said.
He disclosed that a Medium Tax Office had been opened in Abuja to handle NGOs’ tax issues as part of the organisation’s move to create specialized offices for various taxpayer groups.
In an opening address, the Coordinating Director, Field Operations Group, Mr. Ajayi Bamidele, noted that the contributions of NGOs were recognised in the society as they undertook shared responsibility with government for social and development needs of the country, thereby relieving the financial burden which otherwise should have been government’s responsibility.
- See more at: http://www.vanguardngr.com/2014/10/ngos-must-pay-tax-firs-insists/#sthash.mI6TAvqF.dpuf
Mashi, who was represented by the Coordinating Director of Modernisation, Mr. Osy Chuke, explained that the only tax which such organizations was exempted was income tax but that if they got involved in activities that yielded profit, taxes had to be paid to the federal government from such profits, adding that personal income taxes of their staff had to be paid to the government.
“Nigerian tax laws do not necessarily exempt NGOs from paying taxes.  Rather they recognise NGOs as basically no-for-profit entities, which are therefore exempted from paying Income Tax.
“Where, however, an NGO engages in activities from which it derives profits, then it will be required to pay taxes on such profits, like any other profit-making entity.
“Also, other than income taxes, NGOs are not exempt from paying taxes suck as Value Added Tax, VAT, on goods and services.  They are also required to deduct and pay over Personal Income Tax from the salaries and allowances paid to their employees, amongst others,” he said.
He disclosed that a Medium Tax Office had been opened in Abuja to handle NGOs’ tax issues as part of the organisation’s move to create specialized offices for various taxpayer groups.
In an opening address, the Coordinating Director, Field Operations Group, Mr. Ajayi Bamidele, noted that the contributions of NGOs were recognised in the society as they undertook shared responsibility with government for social and development needs of the country, thereby relieving the financial burden which otherwise should have been government’s responsibility.
- See more at: http://www.vanguardngr.com/2014/10/ngos-must-pay-tax-firs-insists/#sthash.mI6TAvqF.dpuf

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