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8 Taxes That Are Collected By The Federal Government

A tax is a compulsory charge placed by the government on the income of an individual, corporation, trust, as well as on the value of an estate or a gift. The purpose of tax collection is to benefit the public, by generating revenue to meet the government's expenditure.

Taxes could either be a direct or an indirect levy. Where individuals or persons are asked to pay for no particular services or goods delivered to them, but simply for the maintenance of government together with its services, it is said to be a direct type of taxation. Indirect taxation occurs where persons or individuals are charged for services rendered to them, transactions conducted, or for other activities.

As a result of Nigeria being a Federation, the jurisdiction of tax is dependent on the legislative powers under the constitution. The Federal Government being the highest tier of government reserves dominance over the most important and beneficial areas of the economy. The type of tax to be paid, the income of an individual, and other factors influence and determine the body of government that will be charged with the responsibility of collecting such tax.

In this article, we would examine the taxes that are collected by the Federal Government. They include:

1. Companies Income Tax

2. Withholding tax on Companies. This also includes withholding tax on companies, residents of the Federal Capital Territory Abuja and non residents.

3. Petroleum Profits Tax

4. Value Added Tax

5. Education Tax

6. Capital Gains Tax on the residents of the Federal Capital Territory Abuja, corporate bodies and non resident individuals

7. Stamp duties on corporate bodies and residents of the Federal Capital Territory Abuja

8. Personal Income Tax in respect of the members of the Nigerian Armed Forces, residents of the Federal Capital Territory Abuja, members of the Nigerian Police Force, staff of the Ministry of Foreign Affairs Abuja.

Content created and supplied by: Busayomi (via Opera News )

Federal Government Federation Nigeria

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