AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Most small traders in Jos deal with three layers: personal income tax to the Plateau State Internal Revenue Service (often as presumptive tax for those without accounts), local government charges such as shop or signage fees, and market dues. Under the Nigeria Tax Act 2025, small companies with turnover up to ₦100 million and fixed assets up to ₦250 million pay 0% company income tax, and small businesses are exempt from charging VAT. Any state demand should come as an invoice you can verify on the PlateauIGR portal.
Shop owners in Jos often say they pay "everybody": the state, the council, the market union and the man with a receipt book. Some of these are legal, some are not. This guide sets out what the 2025 tax laws say for small businesses and how to check a demand before you pay.
Who taxes what
The Nigeria Tax Administration Act 2025 splits the job. The Nigeria Revenue Service (NRS), which replaced FIRS, handles taxes on companies, VAT and non-residents. State revenue services handle income tax on resident individuals, including PAYE. That means:
- Sole trader or business name
- Your profit is taxed as personal income by the Plateau State Internal Revenue Service.
- Limited company
- Company income tax and VAT are federal (NRS), though the company still deducts PAYE for staff and pays it to the state.
- Local government
- Councils in Jos North and Jos South may charge items such as shop permits, signage and market fees under their own laws.
Federal side: what small businesses are spared
The Nigeria Tax Act 2025, effective 1 January 2026, made several changes that matter to small firms:
- Company income tax. A small company, with turnover up to ₦100 million and fixed assets up to ₦250 million, pays 0% company income tax, according to a Mondaq overview of the reforms. It still files a return.
- VAT. Forvis Mazars (March 2026) notes that small businesses below the same thresholds are exempt from registering for, charging, filing and remitting VAT; professional service providers are excluded from this definition.
- Records. The Tax Administration Act requires every person, even those exempt, to keep records sufficient to work out their tax for at least six years.
State side: presumptive tax in Plateau
Many small traders do not keep full accounts, so states use presumptive tax: an amount assessed from the type and size of the business instead of from audited profits. PlateauIGR, the Plateau State revenue portal, offers a Presumptive Tax Invoice alongside normal invoices, plus tools to verify and pay invoices, file returns and verify a tax clearance certificate. The portal does not publish presumptive rates, so the amount appears when the invoice is generated.
If you earn as an individual, the Nigeria Tax Act 2025 taxes the first ₦800,000 of annual income at 0%, according to a Mondaq summary, and income at or below the national minimum wage is exempt for employees. A trader whose profit is below that level may owe nothing in income tax but should still keep records.
Worked example: what a small shop might owe
Example only; the levy amounts are illustrative, not official rates. A provisions shop in Tudun Wada makes ₦700,000 profit in a year. Under the 2025 Act its owner's income falls within the first ₦800,000 taxed at 0%. The shop still meets other charges: say ₦15,000 a year for a council shop permit and ₦500 a week to the market association, or ₦26,000 a year. Total yearly charges: ₦15,000 + ₦26,000 = ₦41,000, with no income tax.
If you employ staff
Once you have employees, you must deduct PAYE from their pay and remit it to the Plateau State Internal Revenue Service, even if your business itself owes little tax. Professional sources disagree on the monthly deadline under the new law: PwC's 2024 summary gives the 10th of the following month, while the Tax Administration Act 2025 runs penalties from after the 21st. The safe course is to pay by the 10th and confirm the current date with PIRS. Staff earning the national minimum wage or less are exempt from income tax, but you still keep payroll records for them.
Local government and market levies
We could not find a published list of current Jos North or Jos South council levies in October 2026. Without a published list, the burden is on the collector to show authority. Treat any demand with the same checks:
- Ask which law or bye-law authorises the levy and what the rate is.
- Ask for a printed demand notice or invoice, not a verbal request.
- Pay into a government account or an invoice you can verify on PlateauIGR, never cash to an individual.
- Keep every receipt; you may need them to dispute a later demand.
- If in doubt, visit the council revenue office or PIRS before paying.
Keeping records that protect you
Good records are what turn a disputed demand into a short conversation. Keep a simple daily sales book or app record, file supplier invoices, and keep every tax and levy receipt in one folder for at least six years, as the Tax Administration Act requires. If a revenue officer later assesses you on a guess, your records are the basis for objecting. If you are asked to pay a back-dated levy, ask for the period, the rate and the law it relies on, and compare it with your receipts before you pay.
Where Pryme fits
A Pryme Business Account keeps takings separate, and the Finance agent prepares records you can show a tax officer; a person approves anything above a set ceiling. See also registering a business in Jos and tax on side-hustle income.
Questions people ask
How much tax does a small business pay in Plateau State?
It depends on structure and income. Individuals' first ₦800,000 of income is taxed at 0% under the 2025 Act; traders without accounts are often assessed presumptive tax by Plateau's revenue service, generated as an invoice on PlateauIGR.
Do small businesses pay VAT in Nigeria from 2026?
Businesses with turnover up to ₦100 million and fixed assets up to ₦250 million are exempt from VAT registration and charging, except professional service providers.
How do I know a levy collector in Jos is genuine?
Ask for the law behind the levy, a printed invoice, and a government payment channel; verify state invoices on PlateauIGR.
Is market union due a tax?
No. It is a payment to an association, not a government levy.
Sources
- PlateauIGR: Plateau State internal revenue portal · accessed Oct 2026
- Mondaq: The new era of taxation in Nigeria (2025 tax reform Acts) · accessed Oct 2026
- Forvis Mazars: 2025 NTA VAT key business changes (16 Mar 2026) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- Mondaq: Understanding personal income tax under the Nigeria Tax Act 2025 (5 Jan 2026) · accessed Oct 2026
- PwC Nigeria: Highlights of the Deduction of Tax at Source (Withholding) Regulations 2024 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.