- Registrar General of CAC clarifies PoS operators’ tax requirement, stating they register under ‘Business Name’ category, not mandating tax returns
- Magaji assures PoS operators protests, stating taxes for Business Name category go to state government, requiring only yearly profile update
Ishaq Magaji, SAN, the Registrar General of the Corporate Affairs Commission (CAC), has clarified the misconception surrounding the requirement for Point of Sales (PoS) operators to remit monthly taxes to authorities following their registration.
In an interview with Trust Radio, a subsidiary of Media Trust Group, Magaji revealed that PoS operators would register under the ‘Business Name’ category, which does not mandate tax returns.
The recent directive from CAC instructed PoS terminals, whether operated by agents, merchants, or individuals, to register with the agency before commencing business operations. However, this directive sparked protests among PoS agents who argued that registration would adversely affect their transactions, diminish profits, and potentially force them out of business.
Magaji addressed these concerns, stating, “If you are paying tax to the FIRS, you must be a Limited Liability Company, but these are registering under a business name. Except if the state government captures them, their taxes go to the state government. The only thing they will be required to do is a yearly profile update with the agency in case of any changes.”
Furthermore, Magaji mentioned that the commission is training staff to operate 24 hours daily to accommodate the increased demand. He also noted that the registration for PoS operators will close by July 7, 2024.