Small business is free of tax

[Alexandoy]

Unless you need an official receipt in selling your merchandise there is no need to pay taxes for a small business. This is applicable to home based business where the place of business is not rented. Small items such as food stuff, clothing and personal accessories do not need to register with the government agency because it is considered an informal business - temporary in nature and dealing with small transactions only. This is a good incentive for entrepreneurs who need to gain experience in selling.

 

[eojo2401]

Yes, small scale business is free of tax if the turnover is less than #25m. That's what the 2019 financial act says and alot of small scale business owner has been enjoying this privilege since last year in Nigeria.

 

[Eyiteepraise]

If the business go for a tax that will depend on its sales and profit then it will surely pay small tax acvo ding to the business.
There are many business out there which are small but still pay big tax because of the tax they go for.

 

[Kiko]

Small businesses pay an average of 19.8 percent in taxes depending on the type of small business. How Are Small Businesses Taxed? You might be surprised to learn that most small businesses don’t pay the corporate rate for income tax. In fact, 75 percent of small businesses aren’t considered corporations but something called unincorporated pass-through entities. What Is the Small Business Tax Rate by State? State income tax has changed, thanks to the Tax Cuts and Job Act, as well as other state taxes. Not all states have income tax.

 

[Onachukwu]

When you make money with your own small business you have to pay income taxes just as if you worked for another company. In some cases, you may also have to pay additional taxes that are specifically associated with small business operations

 

[Dapoyemi]

I can't really say small business is free of tax because in my country here before you can enjoy having a shop or business where you display your wares you must have registered to a body in business or you must have joined an organisation meant for business men or women in that community to avoid embarassment of any form.

 

[eLdavis]

Most small business are not even registered in the right, so the government is not even aware of them, not to mention taking of task from them. And many small business dont even make enough profit for you to actually pay tax on

 

[GIFTMICHAEL]

This is absolutely true and that is how it is supposed to be. If you have a small business you owned maybe a business that has no business name definitely you are free to operate without paying tax.
Government impose tax on business that has been duly registered and licensed.

 

[lelakil3]

Unless you need an official receipt in selling your merchandise there is no need to pay taxes for a small business. This is applicable to home based business where the place of business is not rented. Small items such as food stuff, clothing and personal accessories do not need to register with the government agency because it is considered an informal business - temporary in nature and dealing with small transactions only. This is a good incentive for entrepreneurs who need to gain experience in selling.

It is should be in free of tax unless they are on leasing they should register but if the small business has low income then need to pay taxes it really feel sad on this. Small business should be exempted for tax for them to encourage and they can commit to big business so the tax will applied so.

 

[Abbas007]

When you make a lot of money in your small business, you have to pay income tax.
If it is a home-based business, if you are earning at a lower percentage, you may not have to pay taxes, otherwise you will have to pay more taxes.

 

[Gilead]

This is quite interesting. Do you think payment of tax should be necessary for Small scale businesses, since they're part of the sector that is trying to raise the growth of the economy. I feel they should pay no or less tax though.

 

[Seyesystem]

Small scale business suppose not to be paying tax but in some developed countries small business do pay tax according to what I read but in my country small-scale Business doesn't pay tax what they pay Sam levy to local authority in there business environment. My own opinion is that small-scale business should not be paying tax since they are in their time of growing their business which require time and money.

 

[Ralphjoe]

It is absolutely true that small businesses are exempted from paying tax in my country. This is because most of these businesses are not really registered with the government so they are not fully recognized by the government hence they can't be taxed.

 

[Alexandoy]

It is should be in free of tax unless they are on leasing they should register but if the small business has low income then need to pay taxes it really feel sad on this. Small business should be exempted for tax for them to encourage and they can commit to big business so the tax will applied so.

I think that is the point of the government in not levying tax on small businesses so they can encourage the others to be entrepreneurs especially in the market place where so many vendors are just doing their business of selling with no government registration. But then that is an informal business. If you will rent a store space then you would need a license to operate and you also have to pay taxes on your business.

 

[Yaqoob Habib]

This is quite interesting. Do you think payment of tax should be necessary for Small scale businesses, since they're part of the sector that is trying to raise the growth of the economy. I feel they should pay no or less tax though.

The tax-free threshold for individuals is $18,200 in the 2019-20 financial year.A sole trader business structure is taxed as part of your own personal income.there is no tax-free threshold for companies -you pay tax on every dollar the Company earns.the full company tax rate is 30%.

 

[Sariana23]

That's right @Alexandoy , in my country it's the same, small companies that generate less annual profits are not required to pay taxes. Only those businesses that generate an amount greater than 1000 (UT) annual tax units and individuals with an amount greater than 1500 UT will pay it.

 

[Joseph555]

In a good reasoning, small business owners should not be tax but in my country, they are tax the most, large business owners are mostly government officials and the the their office authority to avoid paying tax.

 

[Ridorz]

Yes, you are right small businesses are exempted from tax paying. As far that small business doesn't recognize by government Because they do not registered to under a government, that is why they free from tax payment in my country.

 

[Richard92]

No business is free from taxes been it a small scale business or large business, they are mandated to pay taxes, you must always pay your taxes as a business owner, it is your legal duty as a citizen of a particular country

 

[arrain3786]

Employ a Family Member.
Start a Retirement Plan.
Save Money for Healthcare Needs.
Change Your Business Structure.
Deduct Travel Expenses.
The Bottom Line.
Sole trader tax is paid on your business's profit. ... If your business is a limited company, you could pay income tax on any salary or dividends you take from the company. Whether you pay income tax, and how much you pay, depends on how much you take out.