Federal Inland Revenue Services Exam Questions and Answers

Federal Inland Revenue Services Exam Questions and Answers

Here are 20 multiple-choice questions about the Nigeria Federal Inland Revenue Service (FIRS) along with the options and correct answers for each:

Which government agency is responsible for collecting and managing taxes in Nigeria?

a) Nigeria Customs Service

b) Federal Inland Revenue Service (FIRS)

c) Nigerian National Petroleum Corporation (NNPC)

d) Central Bank of Nigeria (CBN)

Answer: b) Federal Inland Revenue Service (FIRS)

What is the primary objective of FIRS?

a) Regulating financial institutions

b) Managing Nigeria's foreign reserves

c) Ensuring compliance with tax laws

d) Supervising the stock exchange

Answer: c) Ensuring compliance with tax laws

Which tax is commonly referred to as "the tax on goods and services"?

a) Personal Income Tax

b) Company Income Tax

c) Value Added Tax (VAT)

d) Education Tax

Answer: c) Value Added Tax (VAT)

How often is Value Added Tax (VAT) remitted to FIRS by eligible taxpayers?

a) Annually

b) Quarterly

c) Monthly

d) Every two years

Answer: c) Monthly

Which tax is imposed on the profits of companies operating in Nigeria?

a) Capital Gains Tax

b) Withholding Tax

c) Company Income Tax

d) Petroleum Profit Tax

Answer: c) Company Income Tax

What percentage is the standard rate for Company Income Tax in Nigeria?

a) 5%

b) 10%

c) 20%

d) 30%

Answer: d) 30%

Who is required to file annual tax returns with FIRS?

a) Only individuals with high income

b) Only businesses with employees

c) Only registered companies

d) All taxpayers with taxable income

Answer: d) All taxpayers with taxable income

Which tax is applicable to the sale or transfer of properties in Nigeria?

a) Pay-As-You-Earn (PAYE) Tax

b) Capital Gains Tax

c) Education Tax

d) Withholding Tax

Answer: b) Capital Gains Tax

How is Personal Income Tax collected in Nigeria?

a) Through self-assessment by individuals

b) Automatically deducted from salaries (PAYE)

c) Directly collected by FIRS officers

d) Paid during property transactions

Answer: b) Automatically deducted from salaries (PAYE)

What is the purpose of the Tax Identification Number (TIN)?

a) To track taxpayer's spending habits

b) To facilitate tax evasion

c) To identify taxpayers for tax purposes

d) To provide discounts on tax payments

Answer: c) To identify taxpayers for tax purposes

Which tax is applicable to the interest earned on deposits in Nigerian banks?

a) Petroleum Profit Tax

b) Value Added Tax (VAT)

c) Withholding Tax

d) Education Tax

Answer: c) Withholding Tax

What is the current rate of Withholding Tax in Nigeria?

a) 2.5%

b) 5%

c) 10%

d) 15%

Answer: b) 5%

What is the main source of revenue for FIRS?

a) International aid

b) Oil exports

c) Corporate donations

d) Tax collection

Answer: d) Tax collection

Which tax is imposed on the profits derived from petroleum operations in Nigeria?

a) Company Income Tax

b) Value Added Tax (VAT)

c) Petroleum Profit Tax

d) Capital Gains Tax

Answer: c) Petroleum Profit Tax

What is the tax rate for Petroleum Profit Tax in Nigeria?

a) 10%

b) 20%

c) 30%

d) 50%

Answer: c) 30%

Which tax is levied on specific luxury goods and services in Nigeria?

a) Excise Duty

b) Personal Income Tax

c) Education Tax

d) Withholding Tax

Answer: a) Excise Duty

Who is responsible for the administration of Education Tax in Nigeria?

a) Central Bank of Nigeria (CBN)

b) Federal Inland Revenue Service (FIRS)

c) Ministry of Education

d) Nigerian Universities Commission (NUC)

Answer: b) Federal Inland Revenue Service (FIRS)

How is Education Tax calculated?

a) Based on the number of employees in a company

b) Based on the profits of a company

c) Based on the individual's level of education

d) Based on the number of dependents

Answer: b) Based on the profits of a company