The Giant Source

12/12/2025

Will POS Operators Also Pay Tax?

The answer is YES, depending on the total yearly income of the POS Operator. According to the new tax law of Nigeria, POS operators might be charged or exempted from being charge base on their income, the structure of the business or turn over. Let’s dig deeper:

1) Personal POS for Sole Proprietors / Micro Businesses:
According to the new tax act, 2025 as amended, assuming your annual income is N800k or below, no need to pay for the Personal Income Tax (PiT). If you earn above N800k or more than N800k entered your account, then Personal Income Tax (PiT) is applicable to you at an estimate rate of 25% of the total amount.

Example: Let’s say the total amount that circulate in your account is 1, 000, 000. Then 1, 000, 000 (total amount) X 25 (FG percent) divide by 100 = 250, 000. This means out of the 1, 000, 000 that entered your account, FG owns 250k, the remaining 750k will enable you to pay rent, utility and hospital bill, eat food and take your family to 5G for outing/chilling, all in 750k? Hmmmmm.

2) POS Registered as Small Companies like Limited Liability Company (LLC):
As for this category of business, if your annual transaction or turnover is below N100m and fixed assets below N250m, then noting concern you with company tax. Meaning, you’re exempted from the Company Income Tax (CiT). But mind you, you still have to file annual returns for your CAC in order to keep it up to date/ active, and to avoid penalties even though your tax is zero.

3) POS With High Volume of Transaction Inflow/Outflow:
If your POS transactions surge above the small business threshold (N800k), you will likely be charged for Company Income Tax (CiT) and taxes based on profits/gains. And don’t forget there’s VAT if applicable.

In conclusion, as a POS operator, book keeping/ recording inflows and outflows is very important. To sustain your business, kindly separate personal fund income from business fund income. With the new tax bill featuring digitalization, all your transactions will be monitored by tax regulatory bodies or authorities.

Dm me or send email to register your business, obtain TIN number, SCUML Certificate etc.

Isiyaku Mohammed Kudu
[email protected]

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12/12/2025

NIGERIA TAX REFORM ACT, 2025.

An act amended by both executive and legislative arm of the federal republic of Nigeria.

This new act was established to repeal/cancel the Capital Gains Tax Act, Casino Act, Companies Income Tax Act, Income Tax Relief Act, Personal Income Tax, Stamp Duties Act, Value Added Tax Act, and the Venture Capital (Incentives) Act.

The new tax reform bill (effective by 01-January-2026) is set to amend the Nigeria Export Processing Zones Act, Oil and Gas Free Trade Zone Act, The National Information Technology Development Agency Act, Petroleum Industry Act, Tertiary Education Trust Fund Act, The NASENI, Customs, Excise Tariffs Act, etc. Moreover, the bill will also amend the National Lottery Act, Nigeria Minerals and Mining Act, Cybercrime Act etc.

According to the FG, this new act will provide unified fiscal legislation governing. The act is applicable to every citizen of Nigeria whether on a personal basis or on behalf of family.

The tax on income shall be in accordance with this new act, basically in regards to
》Profits or gains of any business, enterprise or company
》The total yearly income of every individual or family in Nigeria.
》The income arising, accruing or due to a trustee or an estate.

Furthermore, on income, profits or gains chargeable to tax. The new tax reform act will also be applicable to the following:

》Every profits or gains from any trade/transaction, business, profession or vacation.
》Fees, rents, or royalties.
》Income, profits or gains from disposal or lending securities.
》Prizes, winnings, honoraria, grants, awards and laurels.
》Profits or gains from transaction in digital or virtual assets.

We all need to be very careful and understand the new tax reform act otherwise we will fall victim.

Stay tuned as we dive deeper into how this bill will affect personal income (salary, wages and fees), business (including POS operator), categories of CAC certificate etc.

Isiyaku Mohammed Kudu ✍