Tax Guides & Resources

A tax levied on the income of individuals, including salaries, wages, bonuses, and other forms of compensation. In Nigeria, PIT uses progressive tax rates ranging from 0% to 25% based on income brackets.

A tax imposed on the profits of companies operating in Nigeria. The standard rate is 30% for large companies, with reduced rates for small and medium enterprises.

A consumption tax placed on goods and services at each stage of production or distribution. Currently set at 7.5% in Nigeria, VAT is collected by businesses and remitted to the government.

A tax deducted at source from payments made for goods, services, or contracts. The payer withholds a percentage of the payment and remits it to tax authorities on behalf of the payee.

A tax on the profit realized from the sale of capital assets such as property, stocks, or businesses. In Nigeria, CGT is generally charged at 10% of the chargeable gain.

A unique number assigned to taxpayers for identification purposes. Every taxpayer in Nigeria must have a TIN for tax filing and compliance.

A system where employers deduct income tax from employees' salaries and remit it directly to tax authorities. This ensures regular tax collection throughout the year.

The portion of income subject to taxation after deducting allowable expenses, reliefs, and exemptions. It forms the basis for calculating tax liability.

Deductions or allowances that reduce taxable income, such as pension contributions, life insurance premiums, or National Housing Fund contributions.

A tax-free allowance granted to individuals, calculated as the higher of 1% of gross income or ₦200,000 plus 20% of gross income.

The income remaining after all allowable deductions and reliefs have been subtracted from gross income. Tax is calculated on this amount.

A tax system where the tax rate increases as income increases. Nigeria uses progressive rates for personal income tax, ensuring higher earners pay a larger percentage.

Income or transactions that are not subject to tax. Examples include certain government bonds, agricultural income, or income below the tax-free threshold.

A yearly declaration of income, expenses, and tax paid, filed with tax authorities. Required for individuals and businesses to maintain compliance.

The process by which tax authorities determine the amount of tax owed by a taxpayer based on their income, expenses, and applicable tax laws.

An additional tax imposed on companies in Nigeria, calculated as a percentage of assessable profits. Used to fund national development projects.

A baseline tax that companies must pay regardless of profitability, ensuring all businesses contribute to government revenue even during loss-making periods.

VAT paid on purchases and expenses by a business. Can be offset against Output VAT to determine net VAT payable.

VAT collected from customers on sales of goods and services. Businesses must remit this to tax authorities after deducting Input VAT.

The act of fulfilling all tax obligations, including timely filing of returns, accurate reporting of income, and prompt payment of taxes due.