Usually, the failure to comply with tax laws or to pay up tax as and when due could lead to facing severe penalties, paying high fines, and even the damage to your reputation as an investor in the real estate market. However, you can secure tax exemption when your property is used for charitable or educational purposes. This way, you are not required to pay any tax on that property.

As a dutiful real estate investor who complies with tax obligations, there are certain obligations you are required to fulfill. You should start with registering with the Federal Inland Revenue Service (FIRS) to obtain your Tax Identification Number (TIN). With this number, you will be required to submit annual tax returns or VAT returns to the tax authorities (FIRS). You just need to ensure that you always pay your tax on or before your due date.

Payment of your taxes also allows you some benefits. You can claim depreciation on property value to reduce taxable income. You can also claim tax relief placed on property expenses. You can also deduct mortgage interest from your taxable income. But you should note that this comes with some complexities in the process. The Nigerian tax laws are very complex and ambiguous, so it will do you a great deal to consult with tax experts. Seeking potential advice will also save you from the dangers of double taxation.

Aside from seeking professional advice, endeavor to stay informed on all the developments that may arise with the different tax laws in the country. Also, payment of taxes as an investor is a process that requires you to plan strategically and properly consider all of your investment decisions and their tax implications before going into the investment.