Nigeria - Register for PAYE Tax
- 1 Procedure
- 2 Required Documents
- 3 Office Locations & Contacts
- 4 Eligibility
- 5 Fees
- 6 Validity
- 7 Documents to Use
- 8 Sample Documents
- 9 Processing Time
- 10 Related Videos
- 11 Instructions
- 12 Required Information
- 13 Need for the Document
- 14 Information which might help
- 15 Other uses of the Document/Certificate
- 16 External Links
- 17 Others
- The law stipulates that an employer is answerable for PAYE taxes deducted or to be deducted and paid to government.
- Tax Forms A will be supplied free of charge to employees through their employers.if you are the Employers you should approach the relevant Tax Offices in your various States (including the FCT) where they operate to collect tax Form A, for distribution to your employees.
- You should certify the correctness of the salaries and allowances declared in the forms by your employees to ensure that correct reliefs are granted the employee.
- All Tax Deduction Cards (TDC) used in operation of the PAYE Scheme and End of Year returns should be returned to the relevant tax authorities not later than January 31st of the following year.
- Employer Annual Declaration Form H1 for use in any year should be returned not later than 31st January of that year.
- End of Year Returns must be submitted along with Tax Deduction Cards not later than 31st January of that year . The years returns must show the name of employees, total emoluments, total reliefs granted and tax paid by the employees.
- The receiving officer should take all of them, stamp them and give you back one of the P10Ds for your files.
- The manual method requires you to pay at the bank and then go back to relevant tax offices to confirm the submission.
- Remittances must be done within 10 days of the end of each month in order to prevent payment of interest and penalty for late payment. A receipt must be collected by the employer for any remittance made.
The registration requirements are as follows:
- A copy of certificate of incorporation.
- List of staff and their annual salaries.
- The Directors Tax Clearance Certificates (now Electronic Tax Clearance Certificate)
- Letter of application for registration.
Upon completion of registration, an Employer's Identification Number will be issued.
Office Locations & Contacts
- Internal Revenue Service
The Good Shepherd House,
Block H,Plot H1,CBD,
Telephone 08059889830, 07034954595
All employers of private and government institution.
free of charge
Documents to Use
Please attach documents that can be used by people. e.g. links
Please attach sample completed documents that would help other people.
processing take 7 days
Videos explaining the procedure or to fill the applications. Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites. Please remove the "&" inside the tags during implementation. Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, sevenload, viddler, vimeo, youku, youtube width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed. e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M".
The employer must register for PAYE, as well as be familiar with the rules relating to the filing of PAYE returns and how PAYE is calculated.The registration to get a PAYE file number generally involves a few minutes.
- Name of Taxpayer
- Taxpayer Identification Number
- Business Name or Trade Name of Taxpayer
- Bank Details
- Name of Bank
- Bank branch
- Account Number
- Type of Employment
- Total Income Chargeable Income Total Tax Payable
- Details of Salary paid and PAYE deducted from Employees
Need for the Document
Pay-AS-You-Earn are method by which an employee pays income Tax on his earning from employment and other sources in twelve monthly instalments over the year. It is not tax separate or different from personal income Tax.
Pay As you Earn (PAYE) is a tax that is directly pegged onto ones income.Every employer is required to deduct monthly taxes from liable employees salary payments and any other employment benefits whether monetary or in kind.
A company must register as an employer and operate PAYE on the income of directors even if there are no other employees. A director of a Nigerian incorporated company is liable to PAYE on any income attributable to the directorship irrespective of their residence status or where the duties of the directorship are performed.
Notification should be sent to the local Revenue office responsible for the geographic location where the business is managed and controlled within 9 days from the date the employer is so liable.
Information which might help
- The PAYE Deduction are made in twelve monthly installment over the year at a prescribe rate from an employees income at the source of payment. The employer is the agent of government who is empower to deduct Tax from employees salaries and the tax deducted is calculated by reference to the gross pay before any deductions.
- Pay as you earn (PAYE) taxes deducted is expected to be remitted within 10 days after the month of deduction.
- All Employers of Labour, Agents and Consultants should ensure that all employees make full disclosure of all their incomes at the beginning of the year (whether or not such income is received in Nigeria or nor) when tax forms A are completed by them before returning same to the tax office.
- The PAYE Regulations, 2003 made pursuant to the Personal Income Tax Act provides that all employers are to register with the Lagos State Board of Internal Revenue Tax Office nearest to the registered company address for the purpose of remitting income tax deducted from their employees.
- The employer must within 6 months of commencing a business deduct tax from emoluments of employees and remit the amount deducted to any of the designated collecting banks.
Other uses of the Document/Certificate
Please explain what are other uses of obtaining this document/certificate. e.g. Birth Certificate can be used as proof of identity.
More information which might help people.