Moving from ‘Not Yet Commenced’ Status: What You Need to Know
Dear Readers,
Question
What is the minimum revenue required to remove your business from “Not Yet Commenced” status with FIRS?
Answer
In Nigeria, FIRS categorizes businesses as “Not Yet Commenced” until they achieve a revenue threshold or begin operations. The minimum revenue required depends on demonstrating financial activity through:
- Turnover Threshold:
- Declaration of Activity:
- Tax Filing Compliance: File nil returns until revenue-generating status is reached to avoid penalties.
Advantages of Moving from ‘Not Yet Commenced’ Status
- Access to Contracts: Many clients require tax compliance.
- Improved Credibility: Enhances business legitimacy.
- Avoid Penalties: Stay compliant to avoid fines.
- Access to Financing: Tax compliance is often required for loans and grants.
Estimated Revenue Threshold
A turnover of ₦1,000,000 (one million naira) or more can help demonstrate active operations. Turnover refers to total revenue from goods or services before deductions.
Recommendation: Contact FIRS or a tax professional for compliance.
Reference: Based on FIRS guidelines discussed in the article “Moving from ‘Not Yet Commenced’ to Active Status: A Guide for Nigerian Businesses.”
Believe me,
COO, BIZVILLE PROJECT MANAGEMENT Limited
#TaxCompliance #BusinessGrowth #FIRS #GeorgeNWOGU #Nigeria #BIZVILLEPM 🌐🚀
Motto: Humanity First, then Smart and Green. 🚀
