You asked: What is the minimum taxable income in Nigeria?

What are the taxable income in Nigeria?

In Nigeria, the two key legislation are the Personal Income Tax Amendment Act 2011 (PITAM) and Finance Act 2020.

Tax rates.

Annual taxable income (NGN) Rate Tax payable per annum (NGN)
First NGN300,00 7% 21,000
Next NGN300,000 11% 33,000
Next NGN500,000 15% 75,000
Next NGN500,000 19% 95,000

What is minimum tax in Nigeria?

Minimum tax payable is calculated as 0.5% of gross turnover less franked investment income. For non-life insurance companies, minimum tax is calculated as 0.5% of gross premium. For life insurance companies, minimum tax is calculated as 0.5% of gross income.

What is the personal income tax rate in Nigeria?

The Personal Income Tax Rate in Nigeria stands at 24 percent. source: Federal Inland Revenue Service, Nigeria.

Who is a taxable person in Nigeria?

A person is deemed resident in Nigeria if he or she resides in Nigeria for 183 days in any 12-month period; however, expatriates holding residence permits are also liable to tax in Nigeria even if they reside in the country for less than 183 days in any 12-month period.

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How can we avoid taxation in Nigeria?

How to avoid paying excessive taxes in Nigeria

  1. Donate Money to Organizations listed in schedule 5 of CITA. …
  2. When you sell an asset, reinvest it into the same class of asset. …
  3. Deduct Vat that you pay on your purchases from vat that you receive on your supplies. …
  4. Register an NGO (Non Governmental Organisation) or a Trust. …
  5. Apply for Capital Allowance Certificate.


Is 13th month salary taxable in Nigeria?

13th-month pay is usually exempt from any taxes. However, any payments over the one-twelfth denomination of the employee’s basic salary are taxable.

Does an enterprise pay tax in Nigeria?

Companies Income Tax (CIT): Under the Companies Income Tax Act of Nigeria, a resident or non-resident company incorporated in Nigeria must pay Companies Income tax. … Education Tax (EDT): Here, a tax of 2% of assessable profits is imposed on all companies incorporated in Nigeria.

What is the minimum amount for income tax?

Rebate of up to Rs 12,500 is available under section 87A under both tax regimes. Thus, no income tax is payable for total taxable income up to Rs 5 lakh in both regimes.

How do you calculate personal tax?

To calculate taxable income, you begin by making certain adjustments from gross income to arrive at adjusted gross income (AGI). Once you have calculated adjusted gross income, you can subtract any deductions for which you qualify (either itemized or standard) to arrive at taxable income.

What part of salary is taxable?

Here are the fully taxable income components:

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Basic Salary: the monthly compensation paid as salary, bonuses or commissions. City Compensatory Allowance: paid to offset the high cost of living in metro areas, the CCA is fully taxable as income to the employee. Incentives: reimbursement of personal expenses.

Are gifts taxable in Nigeria?

The generally held opinion in Nigeria is that there is no Inheritance and Gift Taxes in Nigeria. … As taxation is a statutory matter, there is in Lagos State, the Administration of Estates Law which regulates the Estates of deceased persons subject to Lagos State Law.

What are the principles of taxation in Nigeria?

They are the principles of convenience, simplicity, economy, equity, certainty, flexibility and stability. 1. Convenience: A good tax system must be based on the ability to pay. That is, the burden of tax must within the tax payers’ financial ability.

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