Being a woman entrepreneur in Nigeria is amazing

You are chasing your dreams, building something incredible, and inspiring others. 

But let’s be honest, managing a business can feel overwhelming sometimes. 

Taxes are just one of those things that can add a whole new layer of stress.

Don’t worry, this article is here to help! We’ll break down the basics of taxes for Nigerian women entrepreneurs, show you how to find the perfect tax pro, and introduce you to some awesome resources that can support you on your journey. 

 

Understanding Your Tax Landscape

The Nigerian tax system can seem intricate, but with a basic understanding, you can approach tax compliance with confidence. 

Here’s a simplified breakdown of some key tax considerations for women entrepreneurs:

  • Business Registration and Tax Identification Number (TIN): Before embarking on your entrepreneurial journey, ensure your business is formally registered with the Corporate Affairs Commission (CAC). This registration process grants you a Certificate of Incorporation and a Tax Identification Number (TIN). Your TIN is crucial for tax compliance purposes. 
  • Applicable Taxes: The specific taxes your business is liable for will depend on its structure (sole proprietorship, partnership, limited liability company) and annual turnover. Some common taxes for businesses include:
    Company Income Tax (CIT): Levied on the net profit of your business.

Value Added Tax (VAT): Charged on the supply of certain goods and services. Not all businesses are required to register for VAT, but if your annual turnover exceeds the VAT registration threshold, you’ll need to register and collect VAT on your taxable supplies.

Personal Income Tax (PIT): If you operate as a sole proprietor, the income generated by your business will be considered your personal income and subject to personal income tax.

How to find the Right Tax Professional

A qualified tax professional can be an invaluable asset for your Nigerian business. Here are some key considerations when searching for the right fit:

  • Expertise: Seek a tax professional with experience working with women-owned businesses in Nigeria. They’ll understand the unique challenges you face and be familiar with relevant tax regulations and incentives for female entrepreneurs. 
  • Credentials: Ensure your chosen professional is a member of a reputable tax association, such as the Chartered Institute of Taxation of Nigeria (CITN). This demonstrates their commitment to professional development and adherence to ethical standards. 
  • Communication Style: Tax matters can be complex. Choose a tax professional who communicates clearly and patiently, ensuring you understand the implications of their advice. 
  • Fees: Be upfront about your budget and discuss fee structures with potential tax professionals. Some may charge hourly rates, while others offer retainer agreements. 

Here are some resources to help you find qualified tax professionals in Nigeria

  • Chartered Institute of Taxation of Nigeria (CITN): The CITN website maintains a directory of its members. You can search for tax professionals by location and area of expertise [https://portal.citn.org/]. 
  • Institute of Chartered Accountants of Nigeria (ICAN): ICAN also maintains a directory of its members who specialize in tax matters [https://www.icanig.org/]. 
  • Personal Referrals: Network with other women entrepreneurs in Nigeria and seek recommendations for tax professionals they trust. 

Resources and Support Systems for Women Entrepreneurs

The Nigerian landscape is brimming with resources and support systems specifically designed to empower women entrepreneurs. Here are some valuable avenues to explore:

  • Federal Ministry of Women Affairs and Social Development (FMWASD): The FMWASD offers various programs and initiatives aimed at supporting women-owned businesses. These programs may include workshops on tax compliance and financial management. 
  • National Council for Women Societies (NCWS): The NCWS is a leading advocate for women’s empowerment in Nigeria. They may offer workshops or mentorship programs that touch on tax compliance and financial literacy. 
  • Women in Business (WiB) Nigeria: This prominent organization provides resources and training programs specifically focused on equipping women entrepreneurs with the skills and knowledge to navigate business challenges, including tax compliance. 
  • Business Development Service Providers (BDSPs): These private sector organizations offer a range of business development services to entrepreneurs, including women entrepreneurs. Some BDSPs may offer tax compliance assistance or connect you with qualified tax professionals. 

Remember: Researching and engaging with these organizations can provide valuable support and guidance beyond tax matters. Networking with other women entrepreneurs can be a source of encouragement, shared experiences, and referrals to qualified professionals, including tax experts. Don’t hesitate to leverage the support system available to you as you navigate the exciting, yet sometimes complex, world of running your own business in Nigeria.