WHAT YOU NEED TO KNOW ABOUT THE NIGERIA PERSONAL INCOME TAX

Personal Income Tax Act (PITA):

This regulates the Personal Income Tax (PIT).

Individuals including employees, Partnerships, and Unincorporated Trusts are liable to tax under this act.

For Monthly Pay-As-You-Earn (PAYE) Remittances, this Tax is computed annually and divided by 12 to arrive at the Monthly Tax.

For employees, Employers deduct PIT as PAYE and remit on a monthly basis. This remittance is to be made on or before the 10th day of the month following the payment of salary (e.g. PAYE tax deducted from June 2016 salary should be remitted by the 10th of July 2017. Every employer is required to file a return of all emoluments paid to his employees not later than 31st January of every year in respect of all employees in his employment in the preceding year.

For Business Names, Individuals, it is remitted at the end of the year on a Preceding Year Basis.

I hope this article was helpful. For more details on the issue of Personal Income Tax and the PAYE regime kindly contact us.

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