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Income Tax in Nigeria.

Nigeria Tax years run from 1st jan to 31 dec of every year.

All Nigeria companies must register with tax authorities and get TIN (Taxpayer Indeification Numbers). The registration can be accomplished in two to three weeks time. 

The tax due is payable by the last day of the each month.

Companies must register with following authorities.

1) Registration with National Housing Fund (NHF)

2) Registration with Nigeria Social Insurance Trust Fund (NSITF)

3) Registration with National Pension Commission (PenCom)

4) Registration with Lagos State Internal Revenue Service (LIRS) – Provided operations will predominantly be in Lagos State.

5) Registration with Federal Inland Revenue Service (FIRS)

6) Registration with Industrial Trading Fund (ITF)

Sme of these registration requires fees that can be figured out from the comptent authorities.

Income Tax for Nigerian Employees.

Income tax is levied on employees salaries, wages, gains or profits, bonus, benefits which is given to them from employer, contractor or any other source of income from Nigeria. Income tax calculated using the PAYE system are reported each month to state internal revenue services (SIRS). Tax Rate range from 7-24% are calculated on the income bands.

Upto 300,000 NGN: 7% (21,000 NGN)

Up to 600,000 NGN: 11% (33,000 NGN)

Up to 1,110,000 NGN: 15% (75,000 NGN)

Up to 1,600,000 NGN: 19% (95,000 NGN)

Up to 3,200,000 NGN: 21% (336,000 NGN)

Over 3,200,000 NGN: 24% (432,000 NGN)

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