Tax Clearance Certificate
Personal Income Tax
With Holding Tax
Consumption Tax
For More Information, Call Us On:
0808 342 7276
Where an employee works under the supervision or management of a person who is not his employer, that person (hereinafter referred to as the “manager”) must furnish the particulars of the employee’s emoluments to the Tax Office nearest to the company and the manager must deduct the tax due from the employee’s emoluments and remit same to any of the designated collecting banks.
Within ten days of the end of every month, an employer must pay all deductions made from his employees as well as all other taxes due to the nearest tax office or to any of the aforementioned designated banks.
Housing Allowance
Transport Allowance
Meal Allowance
Utility Allowance
Entertainment Allowance
Leave Allowance
Compensation, bonuses, premiums etc.
13th Salary
Benefits in Kind
Other Allowances
1. National Housing Fund contributions.
A Nigerian worker in both the public and the private sectors of the economy shall contribute 2.5 % of his basic monthly salary to the Fund.
2.National Health Insurance Scheme contributions.
Under NHIS , Federal Government employer and employee shall both bear 5% contribution to the scheme. Federal employer to bear 3.25% & 1.75% representing contribution from the employee’s consolidated salary.
While that of private establishment employer & its employees shall both bear 15%. 10% from the employer and 5% from the employee’s basic salary. However, the employer may decide to bear the whole of the contribution depending on the operating policy of the organization.
3. Life Assurance Premium:
This depend on the policy in operation by the organization.
4. National Pension Scheme:
A Pension contributory scheme is a scheme designed to ensure employees derive the benefit of being paid their pension adequately and as when due upon retirement. The Pension Commission regulates the fund. In the past rate was 15%, split evenly between the parties i.e the employer & the employee.
The current rate is 18% – Nigeria 2014 Pension Reform Act. This is to be borne by both the employer 10% and employee 8% of Basic Salary, Housing allowance & Transport allowance.
5. Gratuities:
This is computed on bases of the employee’s grade level, step and basic salary at the point of exit from active service.
Note that the above exemptions are subject to verification and evidences for informed judgment
first 300,000.00 @ 7%
Next 300,000.00 @ 11%
Next 500,000.00 @ 15%
Next 500,000.00 @ 19%
Next 1,600,000.00 @ 21%
Above 3,200,000.00 @ 24%
The tax as computed above is compared to a minimum tax of 1% of Gross Income; whichever is higher is the tax payable.
Every employer shall be required to file a return with the relevant tax authority of all emoluments paid to its employees, not later than 31st January of every year in respect of all employees in its employment in the preceding year.
Monthly Returns Section 41
Employers are expected to submit their monthly staff payroll schedule at the point of remittance for that particular month. This is to enable us verify the current status of tax payers and also to straighten the records with us. This is Strictly done on monthly basis on or before 10th of the month following month of deduction.
Annual Tax Returns
Latest on 31st of January following the year of assessment.
This is very important, as it enable tax authorities to verify whether the correct and accurate taxes have been paid and remitted. In addition it makes processing of Tax Clearance Certificate (TCC) easy for the entire staff and it tells on the integrity of the management.
Penalty for failure to file Annual returns – Section 81(3)
Penalty of N500,000 for failure to file on or before 31 January of the following year.
For More Information, Call Us On:
0808 342 7276
Where an employee works under the supervision or management of a person who is not his employer, that person (hereinafter referred to as the “manager”) must furnish the particulars of the employee’s emoluments to the Tax Office nearest to the company and the manager must deduct the tax due from the employee’s emoluments and remit same to any of the designated collecting banks.
Within ten days of the end of every month, an employer must pay all deductions made from his employees as well as all other taxes due to the nearest tax office or to any of the aforementioned designated banks.
Housing Allowance
Transport Allowance
Meal Allowance
Utility Allowance
Entertainment Allowance
Leave Allowance
Compensation, bonuses, premiums etc.
13th Salary
Benefits in Kind
Other Allowances
1. National Housing Fund contributions.
A Nigerian worker in both the public and the private sectors of the economy shall contribute 2.5 % of his basic monthly salary to the Fund.
2.National Health Insurance Scheme contributions.
Under NHIS , Federal Government employer and employee shall both bear 5% contribution to the scheme. Federal employer to bear 3.25% & 1.75% representing contribution from the employee’s consolidated salary.
While that of private establishment employer & its employees shall both bear 15%. 10% from the employer and 5% from the employee’s basic salary. However, the employer may decide to bear the whole of the contribution depending on the operating policy of the organization.
3. Life Assurance Premium:
This depend on the policy in operation by the organization.
4. National Pension Scheme:
A Pension contributory scheme is a scheme designed to ensure employees derive the benefit of being paid their pension adequately and as when due upon retirement. The Pension Commission regulates the fund. In the past rate was 15%, split evenly between the parties i.e the employer & the employee.
The current rate is 18% – Nigeria 2014 Pension Reform Act. This is to be borne by both the employer 10% and employee 8% of Basic Salary, Housing allowance & Transport allowance.
5. Gratuities:
This is computed on bases of the employee’s grade level, step and basic salary at the point of exit from active service.
Note that the above exemptions are subject to verification and evidences for informed judgment
first 300,000.00 @ 7%
Next 300,000.00 @ 11%
Next 500,000.00 @ 15%
Next 500,000.00 @ 19%
Next 1,600,000.00 @ 21%
Above 3,200,000.00 @ 24%
The tax as computed above is compared to a minimum tax of 1% of Gross Income; whichever is higher is the tax payable.
Every employer shall be required to file a return with the relevant tax authority of all emoluments paid to its employees, not later than 31st January of every year in respect of all employees in its employment in the preceding year.
Monthly Returns Section 41
Employers are expected to submit their monthly staff payroll schedule at the point of remittance for that particular month. This is to enable us verify the current status of tax payers and also to straighten the records with us. This is Strictly done on monthly basis on or before 10th of the month following month of deduction.
Annual Tax Returns
Latest on 31st of January following the year of assessment.
This is very important, as it enable tax authorities to verify whether the correct and accurate taxes have been paid and remitted. In addition it makes processing of Tax Clearance Certificate (TCC) easy for the entire staff and it tells on the integrity of the management.
Penalty for failure to file Annual returns – Section 81(3)
Penalty of N500,000 for failure to file on or before 31 January of the following year.