These tax codes are too long.
Create sample transactions, especially invoices and see how it’s presented on invoices. Generally speaking, you should name tax codes exactly the way as they should show on invoices.
Also, not sure all these are valid tax codes. For example, withholding taxes are implemented differently in Manager. Can you please create realistic transactions to demonstrate how every tax code is used?
You can in any case just use the abbreviations but some are too industry-specific such as NCD, which is a 1% NCD levy applicable on total contract value of any entities involved in any project, operation, activity or transaction in the upstream sector of the Nigerian oil and gas industry. The list has 3 mentions of VAT: Input VAT, Output VAT and VAT, this can be simplified to VAT only except for the exceptions listed https://www.firs.gov.ng/value-added-tax-vat/ (including again the oil sector)
FIRS, the Nigerian tax authority, on their website https://www.firs.gov.ng lists the following taxes:
I just would advise to only use the following entries. Users can then where applicable add Industry specific (NITDL/NCD) or State specific (Land-use levey Lagos State) taxes themselves.
- CIT (Companies Income Tax) 30%
- CGT (Capital Gains Tax) 10%
- VAT (Value Added Tax) 7.5%
- EDT (Tertiary Education Tax) 2%
- PIT /PAYE (Personal Income Tax / Payroll) (Scale based on income steps)
- STAMP DUTY (varies)
(Note that NITDL (National Information Technology Development Levy) 1%, is only applicable for certain sectors see https://www.firs.gov.ng/national-information-technology-development-levy-nitdl/ )
Okay sir. I will make the requested adjustments.
Edna