Jurisdiction of tax authorities

What this section says

Section three answers a question Nigerian taxpayers have argued about for years. Who exactly should I be dealing with? The Nigeria Revenue Service is the federal tax authority.

It has exclusive responsibility for taxes on companies. It also covers the Army, Navy, Air Force and Police, except people serving there in a civilian capacity. It covers officers of the Nigerian Foreign Service, and non-residents who earn profit or income from Nigeria.

It also administers value added tax, the development levy, petroleum income taxes, stamp duties and tax incentives. The tax authority of a state, or of the FCT, administers tax on individuals resident in that state. That covers what their income is, what is chargeable, and the rates that apply to it.

A tax authority may also, with approval of the relevant government, authorise another authority to administer taxes for it. And every authority must account for what it collects, under this Act and the Nigeria Tax Act. The practical lesson is simple.

A company answers to the Revenue Service. A resident individual answers to the state. Know which door your matter belongs to, before you knock on any door at all.

Next, section four: the duty to register and get a Tax ID.

This is a short explanation, not the full text of the Act or advice on your own position. For that, message Kayode Okunola on WhatsApp.