Wikiprocedure > Nigeria


Nigeria - Register for a Personal Income Tax

From Wikiprocedure
Jump to: navigation, search

Procedure[edit]

Employers simply visit one of the Revenue offices fill PAYE return forms which are used to remit the PAYE tax for employees every month.

  • Monthly payments of Pay As You Earn (PAYE) tax liabilities are to be made on or before the 10th day of the month following the applicable month (e.g. January tax to be remitted by 10th of February).
  • PAYE Taxes are calculated as follows:

After the relief allowance and exemptions (see blow) have been granted, the balance of a taxpayer's income is taxed on a graduated scale as shown below:

  • First N300,000 of income @7%
  • Next N300,000 of income @ 11%
  • Next N500,000 of income @ 15%
  • Next N500,000 of income @19%
  • Next N1,600,000 of income @ 21%
  • Above N3, 200,000 of income @ 24%.
  • Direct Assessment Tax & Self Assessed Tax

Direct Assessment is used to assess tax for self employed individuals. With the self assessed tax, a new tax payer can assess him/herself, pay the calculated tax at designated banks and get an e-TCC (Tax Clearance Certificate) without visiting any tax office.



Ads by Google

Required Documents[edit]

  • A certified legible copy of the taxpayers Identity document or Passport document.
  • Proof of identity document/passport
  • Affidavit to justify the absence of the identity/passport together with the temporary identity document/passport.
  • Proof bank statement with the bank stamp that confirms the account holder's name, account number, account type, and branch code;
  • Proof of residential address, e.g municipal account/utility bill of an individula not more than three months old reflecting the name and residential address;



Office Locations & Contacts[edit]

FEDERAL MINISTRY OF COMMERCE & TOURISM

Old Secretariat Area I, Block G & H

P.M.B. 88, Garki, Abuja

Tel: 09-2341689; 2341491


FEDERAL MINISTRY OF FINANCE & ECONOMIC DEVELOPMENT

(Opposite Central Bank)

P.M.B. 14, Garki, Abuja

Tel: 09-2340946; 2340324; 2343783; 2343784

2343786; Fax: 09-2340512


FEDERAL INLAND REVENUE SERVICE (FIRS)

Ministry of Finance Complex

Block B, 2nd Floor Gadastral

Zone A3, Garki, Abuja

Tel: 09-2340939; 2635446

Fax: 09-2635446


Ads by Google

Eligibility[edit]

All employers of private and government institution.



Fees[edit]

free of charge



Validity[edit]

One year



Documents to Use[edit]

Please attach documents that can be used by people. e.g. links



Ads by Google

Sample Documents[edit]

Please attach sample completed documents that would help other people.



Processing Time[edit]

One day but There is no set time for this service.



Related Videos[edit]

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". 
	



Ads by Google

Instructions[edit]

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.

All employers in Nigeria by law are responsible for deducting Pay As You Earn (PAYE) taxes from their employees' pay. Taxes deducted are required to be remitted to the appropriate tax office by the 10th day of the month following the deduction.



Required Information[edit]

  • Name of Taxpayer
  • Taxpayer Identification Number
  • Business Name or Trade Name of Taxpayer
  • Status
  • 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



Ads by Google

Need for the Document[edit]

Personal Income Tax in Nigeria is a tax levied on all incomes of an individual employed by a business or organization. Self employed individuals are expected to file annual returns annually and pay the taxes due.

A taxpayer is required to file returns for the preceding year within 90 days of the end of the year.



Information which might help[edit]

Personal Income Tax Reliefs

The Personal Income Tax Amendment Act of 2011 scrapped the old relief systems and increased relief for all taxable person(s). The amendment combined all reliefs into the Consolidated Relief Allowance (CRA), which combines all previous reliefs (Housing, Meal, Utility, Transport, Leave allowances, etc) into a single relief of N200,000 subject to a minimum tax of 1% of gross income (whichever is higher) plus 20% of the gross income.

Highlights of the amendment are :

  • Consolidated Relief - N200,000.00 or 1% of gross Income whichever is higher
  • Plus 20% of Gross Income
  • Minimum tax payable is 1% of Gross pay.

he Personal Income Tax Amendment Act of 2011 scrapped the old relief systems and increased relief for all taxable person(s). The amendment combined all reliefs into the Consolidated Relief Allowance (CRA), which combines all previous reliefs (Housing, Meal, Utility, Transport, Leave allowances, etc) into a single relief of N200,000 subject to a minimum tax of 1% of gross income (whichever is higher) plus 20% of the gross income.

Highlights of the amendment are :

  • Consolidated Relief - N200,000.00 or 1% of gross Income whichever is higher
  • Plus 20% of Gross Income
  • Minimum tax payable is 1% of Gross pay.

Other Tax Exempt Items In addition to the Consolidated Reliefs and Allowances (CRA) above, the following items are tax exempt and tax is calculated after amounts paid in respect of these items are deducted;

  • National Housing Fund Contributions
  • National Health Insurance Scheme
  • Life Assurance Premiums
  • Pension Deductions


Penalties For Non-compliance

The penalty for failing to file returns according to the Personal Income Tax (Amendment) Act, 2011 is N500,000 for corporate organisations and N50,000 for individuals. Updated: April 9, 2014



Other uses of the Document/Certificate[edit]

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.



External Links[edit]

http://www.ngex.com/business/public/Personal-Income-Tax-in-Nigeria---PAYE,-Direct---Self-Assesment-Taxes



Ads by Google

Others[edit]

More information which might help people.