Top 5 Common Tax Mistakes Small Businesses Make — and How to Avoid Them.

Running a business in Nigeria can be exciting — but one area most entrepreneurs overlook is tax compliance. Many small business owners see tax filing as an afterthought until penalties or account restrictions start showing up.

At Marbcorporate, we’ve worked with hundreds of Nigerian businesses and found that most tax challenges stem from a few common mistakes. Let’s explore them — and how you can avoid falling into the same trap.

1. Operating Without a Tax Identification Number (TIN)

Your TIN is your official tax identity. Without it, your business is invisible to the tax system — and that can lead to problems when applying for bank loans, government contracts, or business grants.

How to fix it:
Apply for your TIN through the Federal Inland Revenue Service (FIRS) or contact Marbcorporate to help you register quickly and correctly.

2. Not Filing Annual Tax Returns

Many business owners believe that if they didn’t make profit, they don’t need to file tax returns — wrong!

Even if your company had no income for the year, you’re still required by law to file a “nil return.”

Failure to do so attracts penalties and could get your company flagged as inactive.

How to fix it:
File your annual returns on time — or let Marbcorporate handle it for you professionally and accurately.

3. Mixing Personal and Business Finances

This is one of the biggest red flags for tax authorities. When personal expenses mix with business accounts, it becomes difficult to track genuine business income and deductions.

How to fix it:
Open a corporate bank account in your registered business name and maintain proper financial records.

4. Ignoring VAT Compliance

Value Added Tax (VAT) applies to most goods and services in Nigeria. Unfortunately, many businesses collect VAT but fail to remit it to FIRS — an offense that attracts serious penalties.

How to fix it:
Understand which of your products or services attract VAT, keep records of your VAT collections, and file monthly VAT returns.

5. Lack of Proper Documentation

When tax audits come knocking, documentation is everything. Missing receipts, invoices, or payment records can lead to incorrect tax assessments and unnecessary stress.

How to fix it:
Keep organized, digital records of every transaction — or let Marbcorporate help you set up a proper accounting and compliance system.

Final Thoughts

Good tax management isn’t just about avoiding penalties — it’s about building trust, credibility, and long-term financial stability.
When your business is tax-compliant, you’re better positioned to access loans, partnerships, and government contracts.

At Marbcorporate, we make tax compliance simple and stress-free — helping you focus on running and growing your business.