Topic: Are the companies really helping at all, with this Nigeria economy situation? (Read 32 times)

What is the definition of a company? A company is a legal entity formed by a group of individuals to engage in and operate a business enterprise in a commercial or industrial capacity, it's also describes as an association of a number of people for a common object.

And this object is usually for the economic gain or profit, but although not all companies objectsare for profit motive, some companies are set up for principally for non-profit reasons. But for those companies which are set for non-profit reasons are not exempted for tax in Nigeria, so what is the meaning of exemption?

Exemption is to excuse someone or something from a duty, payment, etc. And also companies with turnover or less then 25 million are exempted from charging VAT, on their goods and services and filing VAT return. And the companies which are exempted are not much in this our Nigeria, but we aren't still seeing anything from the ones which are paying taxes.

 And which companies are exempted from paying tax in Nigeria. The CIT rate is 0% for companies with gross turnover of NGN 25 million.
First what does companies do?

 A company is generally organized to earn a profit from business activities, and also companies are an important contributor to the health of the economy as they employ individuals and attract disposable income to the growth of the country.

 But right now it's not working that way in this Nigeria, what I noticed is that the government are the ones profiting from the companies not the individuals anymore. The things that companies contribute to the society and to the government, are.

* Provides jobs
* Provides products( Goods and services)
* Provides Tax revenue for the government
*Contributes to the local and national economy
* Contributes to the standard of living and quality of life.

But with all this the individuals are trying their best to get to the companies just to earn for the living. And secondly what is the main purpose of a company in the country? To increase it's profit, the society is demanding that companies, both public and private, serve a social purpose..

companies must benefit all of their stakeholders, including shareholders, employees, customers and the communities in which they operate as their one and only one social responsibility of business. I want to ask where are the profits that is coming from the companies in this Nigeria?

For me I don't see anything how the companies are helping the economy situation right now. Things are still getting higher no matter the income coming in and out, and what role do companies play in the economy? In the economic producers, companies play the role in using input ( different factors of production) and producing goods and services (output).

“Often referred to as firms play a key role in deciding what to produce and how  to produce. Notable firms in the sector. Are,
NAMES                INDUSTRY               NOTES

Mikano                 industrials            electrical powers
              
International                                      general, real, estate
Limited                                                estate and construction

Nigerian National     oil and gas      state-owned oil
Petroleum
Corporation
(NNPC)

Nigerian postal           industrial              Postal service
Service

Nigerian Railway         industrial              National railway
Corporation”

“And Nigeria has various tax incentives intended to encourage investment in key sectors of the economy, follow below.
*TAX holiday
*Rural location incentives
*Export incentives
*Export Expansion Grant (EEG) scheme.
*Gas utilisation incentives
*Tourism incentives
*Investment allowance

All this are going into the government and the economy but we haven't seen any affordable things, that the government have used all this for the economic system and we're still battling for poverty and non-employment everywhere.”

So Generating of employment, direct creation of wealth and reduction of poverty by contributing to the Nigeria business to in the level of development in the country through the gross national  product(GNP) and GDP.  

When should a company start paying tax in Nigeria? Within six months of their financial year-end on a self-assessment basis or 18 months after incorporation( whichever comes first in the country).

Companies are required to register for tax and file their adulted accounts and tax computations with the FIRS. So my conclusion to this topic is that i haven't really seen any encouraging something, that the government are really using all this profits that's coming from the companies to the individuals.

They said that it's to contribute in works and stoping of much poverty, but right now no work and graduate are still looking for work in the country. Me I no know waiting una think towards this thread. But waiting be your opinion?

:. No personal link Dey for this post as na personal writings with no specific citations and I hope I no Dey break law