0 UNDERSTANDING NIGERIAN PERSONAL INCOME TAX

Many Nigerian especially those in the real sectors have been paying their taxes regularly but most cannot state how their employers arrive at those strange figures. The essence of this post is to help you understand the recent amendment in the personal income tax law of Nigeria as at 14 June 2011.

Key changes

·       Introduction of a consolidated tax free allowance of N200,000 or 1% of gross income, whichever is higher, plus 20% of the gross income.

NB: Gross emolument (or income) is defined to include benefits in kind, gratuities, superannuation and any other incomes derived solely by reason of employment.

·       Principal place of residence redefined to include places where branch offices and operational site of companies are situated.

.    Benefit-In-Kind (B.I.K) may be defined as those benefits or perquisites that accrue to a person by reason of the office and/or position he/she occupies. Benefits in kind include such benefits as official car, official accommodation, cooks, gardeners, security etc

0 1st QUARTER EARNINGS FROM TAXES FALLS TO N756.7 BILLION BELOW TARGET

A total sum of N756.7bn was earned by the country from taxes in the first three months of this year, figures obtained from the Federal Inland Revenue Service have revealed.

The tax income figures for the first quarter was prepared by the Planning, Reporting and Statistics Department of the FIRS and were obtained by our correspondent on Thursday.

The document stated that the N756.7bn was N264.8bn lower than the 2014 quarterly target of N1.02tn, which was set by the Federal Government.

A breakdown of the N756.7bn showed that N368.59bn, representing 48.71 per cent, was generated through Petroleum Profit Tax, while the balance of N388.11bn, representing 51.29 per cent, was earned from non-oil taxes.