Topic: Naija Novice Hangout {Newbies introduction & Orientation} Thread. - page 23. (Read 1395441 times)

I.e imagine you want to buy a car of one million naira, that means as an individual, you have to wait for good 10 weeks to complete a transfer of just only one million naira (#100k weekly).  Too bad.

Dis thread is producing low and off topic discussions throough out this last week. There is nothing to discuss again, now I can see dat the thread was not moving for last two years plus. If you can see the activities of the thread is very low though I might be di only one noticing it in that way. Those who are good in bitcoin are quite, and politics will be remove from do the thread next month. As it is I am confused here. The free flow of discussion is...

Those who are good in bitcoin brought topics let discuss.

You no need to bother yourself too much about this matter my guy, if dem implement dis then even the market people go improvise, na because dem never introduce am you dey reason say e go hard. Even person wey no go school now fit operate and use ATM machine. Before dem introduce am for even civil servants to dey collect money from bank instead of table payment dem been grumble but now dem prefer am like that. Anything wey person put head say him go do, e go definitely work out like that. Make we just dey watch see how the matter go be after dem implement am because I no see any reason wey dem go stop am now since e don reach dis stage like dis.

I.e imagine you want to buy a car of one million naira, that means as an individual, you have to wait for good 10 weeks to complete a transfer of just only one million naira (#100k weekly).  Too bad.

The new cash withdrawal limits will have tax implications especially for individuals and MSMEs.

As many people will be forced to carry out transactions using electronic payments, small businesses that currently operate mostly on cash will become visible to the tax authorities.

This will trigger various tax obligations including:
Income tax: If your business is registered as a company you may be liable to CIT depending on your annual turnover (i.e. no CIT if your turnover below N25m, 20% if your turnover is between N25 to N100m, 30% if your turnover is more than N100m) in addition to Education Tax at 2.5%.

If your business is not registered as a company then you will be liable to personal income tax based on graduated taxable income bands between 7% and 24%.

VAT: All businesses are required to register for VAT and charge 7.5% on their goods and services except those with annual turnover below N25m.

PAYE: All employees earning more than N30,000 per month are liable to PAYE which must be deducted and paid to the tax authority by the employer on a monthly basis. You may also be liable to other statutory contributions such as pension depending on your staff strength.

Individuals: The more transactions you make electronically the more the tax authorities will get the intelligence to track your income and net worth making it easier to fish you out if you are a tax evader.

What to do: If you're a small business owner, you need to take some steps now:

1. Register with the relevant tax authorities (FIRS and the State Internal Revenue Service where you operate)

2. Open a separate bank account for your business (or dedicate one for that purpose if you already have a business account) and don't mix business with personal transactions.

3. Government on its part needs to sensitise the general public especially small business owners, and the CBN should ensure a proper handshake with the fiscal authorities. For instance, the conditions for excess cash withdrawals could include Tax Identification Number.