TAX TIPS FOR SMALL BUSINESS: UNLEASH YOUR DEDUCTION POWER!

Hey LinkedIn fam! Ready to decode the tax maze for your small business? We've got your back!

Ever wondered how to cut down that tax bill? It's all about deductions! These are expenses or contributions that give your income a break. Think of them as the superhero capes of the business world, saving you from over-taxation.

Meet the WREN Principles

Navigating deductions? Remember WREN!

Wholly: Keep it all business, no personal fluff.

Reasonably: Be sensible; avoid the taxman's raised eyebrow.

Exclusively: It's for business only—no personal piggybacking!

Necessarily: If it's vital for biz survival, it's deductible.

In Nigeria, these principles are your tax BFFs for Corporate Income Tax. That is to say, in the context of Nigerian tax laws, these principles are generally applied in determining the deductibility of expenses for Corporate Income Tax purposes.

Common Deductible Expenses

Businesses can deduct various expenses, including:

Interest Expense: Deductible if related to producing taxable income. No thin capitalization regulation in Nigeria, but general anti-avoidance rules apply.

Bad Debt: Deductible if incurred in the course of business operations.

Depreciation: Tangible assets' costs (machinery, equipment, vehicles) can be deducted over their useful life through depreciation. Capital allowances are calculated on a straight-line basis.

Peep the chart for initial and annual rates!

Other deductible expenses during Company Income Tax filing on Tax Promax include:

Research & Development Costs: Expenses for innovative activities.

Repair of Assets: Costs associated with asset repair.

Liabilities for Trade Purposes: Deductible trade-related liabilities. Eg: bank loans.

Leasing or Rental Payments: Deductible for business premises, equipment, or vehicles.

Professional Service Fees: Deductible payments to lawyers, accountants, and other professionals.

Charitable Contributions: Deductible contributions to recognized charities or community projects.

Employee-related Costs: Deductions for salaries, wages, benefits, and related expenses.

Advertising and Promotion Costs: Deductible business advertising and promotion expenses.

Remember, track your spending and talk to tax whizzes for precision! That’s where we come in. Accountable Techserve is your compass! We will navigate you through liabilities, accounting standards, and the tax jungle. Connect with us for tailored advice by booking a free consultation.

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