Tax Information Detail

TAX TYPES

PERSONAL INCOME TAX (PIT)

PIT is imposed on individuals who are either in employment or are running their own small businesses, under a business name or partnership.
This tax is generally collected by state governments from those that are resident in their various states, regardless of whether they are federal, state, local government, or private sector workers. The Federal Inland Revenue Service, also collects this tax but only from residents of the Federal Capital Territory as well as what may be described as highly mobile federal worker; staff of the Ministry of Foreign Affairs, other Nigerians and foreigners outside the country but earning income in Nigeria (non-residents), expatriate workers resident in Nigeria, Police Officers, and Military Officers. Civilians working in Police and Military formations, however, pay to their respective States of residence.
The current law guiding the taxation of personal incomes is the Personal Income Tax Act (Cap P8 LFN 2004). Under the law, Federal and States’ tax boards are empowered to identify persons living in or earning income from Nigeria who are required to pay tax, and to assess incomes and tax their incomes using specified guidelines and rules. This law also guides the tax official in identifying the residence of potential taxpayers, as well as the sources and origins of their incomes for the purpose of taxing the income.

PIT encompasses both PAYE and Direct Assessment

PAYE
PAYE is an acronym for “Pay as You Earn”. It is a method of collecting personal income tax from employees’ salaries and wages through deduction at source by an employer as provided by the relevant sections of the Personal Income Tax Act (PITA). (S.81 of Personal Income Tax Act Cap P8 LFN 2011).

DIRECT ASSESSMENT
Direct Assessment is an assessment raised directly on self-employed persons (eg. Professionals, Contractors, Traders, Landlords etc).
The self employed person will without notice or demand, file a return of income earned in the preceding year using Tax Form A.

STAMP DUTIES

It is a tax imposed on legal instruments/documents executed by individuals, this tax is usually placed on the transfer of homes, buildings, copyrights, land, patents and securitiesin or earning income from Nigeria who are required to pay tax, and to assess incomes and tax their incomes using specified guidelines and rules. This law also guides the tax official in identifying the residence of potential taxpayers, as well as the sources and origins of their incomes for the purpose of taxing the income.

CAPITAL GAINS TAX

It is a tax on the profit made from the sale or exchange of capital assets like land shares, machinery.

CONSUMPTION TAX

It is a tax imposed on goods and services consumed in hotels, bars, restaurants and event centres within Kogi State. This tax is payable by the consumers who purchase these goods and services. The hotels, bars, restaurants and event centres serve as collecting agents for KGIRS

WITHHOLDING TAX

This is a specified amount deducted at source from payment accruing or made to individuals or corporate entities in respect of income receivable for service(s) rendered or from investment and remittance of same to the Relevant Tax Authority in line with the provisions of Personal Income Tax (PITA) and Companies Income Tax Acts (CITA).

TAX COLLECTIONS

In order to avoid multiple collections of taxes from the same taxpayer, taxes of each tier of government in Nigeria have been clearly defined by the Joint Tax Board (JTB) as follows:

1. Company Income Tax
2. Withholding Tax on Companies
3. Petroleum Profit Tax
4. Value-Added Tax (VAT)
5. Tertiary Education Tax
6. Capital Gain Tax (for Abuja Residents and Corporate bodies)
7. Stamp Duties Involving a Corporate Entity
8. Personal Income Tax in respect of:
• Armed Forces Personnel
• Police Personnel
• Residents of Abuja FCT
• External Affairs Officers and
• Non – Residents

1. Personal Income Tax in respect of individuals resident in the State
(a)Pay-As-You-Earn(PAYE) (b)Direct Taxation(Self-Assessment)
2. Witholding Tax (Individuals Only)
3. Capital Gains Tax (Individuals Only)
4. Stamp Duties on instrument executed by individuals
5. Poola Betting, Lotteries Gaming and Casino Taxes
6. Road Taxes
7. Business premises registration fee in respect of urban and rural areas which includes registration fees and per annum for the renewals as fixed by each state
8. Development Levy (individuals only) not more than 100 per annum on all taxable individuals
9. Naming of street registration fees in the State Capital
10. Right of Occupancy fees on lands owned by the State Government in urban areas of the State
11. Market Taxes and Levies where State finance is involved
12. Land use Charge, where applicable
13. Entertainment Tax, where applicable
14. Environmental (Ecological) fee or levy
15. Mining, milling and quarrying fee, where applicable
16. Hotel, Restaurant or Event Centre Consumption Tax, where applicable
17. Animal Trade Tax, where applicable
18. Produce Sales Tax, where applicable
19. Slaughter or Abattoir fees, where applicable
20. Infrastructure Maintenance Charge or levy, where applicable
21. Fire Service Charge
22. Property Tax, where applicable
23. Economic Development Levy, where applicable
24. Social Services Contribution Levy, where applicable
25. Signage and Mobile Advertisment, jointly collected by the State and Local Government

1. Shops and Kiosks rates
2. Tenement rates
3. On and Off Liquor License fees
4. Slaughter slab fees
5. Marriage, birth and death registration fees
6. Naming of street registration fees, excluding any street in the State Capital
7. Right of Occupancy fees on lands in the rural areas, excluding those collectible by the Federal and State Governments.
8. Markets taxes and levies excluding any market where State finance is involved
9. Motor park levies
10. Domestic animal license fees
11. Bicycle, truck canoe wheelbarrow and cart fees, other than a mechanically propelled truck
12. Cattle tax payable by cattle farmers only
13. Merriment and road closure
14. Radio and television license fees (other than radio and television transmitter)
15. Vehicle radio license
16. Wrong parking charges
17. Public convenience, sewage and refuse disposal fees.
18. Customary burial grounds permit fees
19. Religious places establishment permit fees.
20. Signboard and Advertisement permit fees.
21. Wharf Landing Charge, where applicable

REVENUE CODES

All revenue items are given unique identity numbers to differentiate one from another. Tax payments are to be made with the correct numeration of Revenue Item and Revenue Code