Personal Income Tax Rates
Chargeable Profit |
|
% |
Tax on Band |
Cummulative
Charge Profit |
Cummulative
Tax |
| First |
30,000.00 |
5.00% |
1,500.00 |
30,000.00 |
1,500.00 |
| Next |
30,000.00 |
10.00% |
3,000.00 |
60,000.00 |
4,500.00 |
| Next |
50,000.00 |
15.00% |
7,500.00 |
110,000.00 |
12,000.00 |
| Next |
50,000.00 |
20.00% |
10,000.00 |
160,000.00 |
22,000.00 |
| Over |
160,000.00 |
25.00% |
|
|
|
Minimum Tax
The Employment Income on which minimum tax is due is still N30,000.00
Personal Relief’s (S.33)
| Personal Allowance |
N5,000 plus 20% Earned income |
| Children Allowance |
N2,500 per child (Limited to 4 children) |
| Dependent Relative Allowance |
N2,000(max for 2) |
| Life Assurance Relief (LAR) |
Allowances are given in respect of premium paid by the taxpayer on policies taken out of the life taxpayer. |
Rates of Withholding tax for companies are as follows:
Dividend, Interest & Rent |
10.00% |
Royalties |
10.00% |
Commissions, Consultancy, Technical & Management |
10.00% |
Construction |
5.00% |
| All types of contacts and agency arrangements, other than |
Sales in the ordinary course of business |
5.00% |
Directors’ Fees |
10.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
Companies Income Tax Rates
The income tax applicable to companies from 1961 to date are as follows:
1st April 1961 - 31st March 1972 |
• 40% plus super tax. (Super tax was payable under certain circumstances) |
1st April 1972 - 31st March 1975 |
• 40% on the first N10, 000 plus 45% on the excess Over N10, 000 |
1st April 1975 - 31st March 1976 |
• NIL on the first N6, 000 plus 40% on the excess over N6,000 |
1st April 1976 - 31st March 1978 |
• NIL on first N6, 000 plus 45% on the excess over N6,000 |
1st April 1978 -31st March 1979 |
• NIL on the first N6, 000 plus 50% on the excess 6,000
• 10% special levy payable on banks excess profit |
1st April 1979 – 31st March 1986 |
• 45%
• 10% Special levy payable by banks |
1st Jan 1987 – 31st Dec. 1988 |
• 40%
• 20% Small business rate with effect from 1988
• 10% Special levy payable on banks excess Profit |
1st Jan 1989 – 31st Dec. 1990 |
• 40%
• 20% Small business rate with effect from 1988
• 10%Special levy payable on bank excess profit |
1st Jan.1991 – 31st Dec. 1991 |
• 40%
• 20% Small business rate. Special levy abolished by decree 63 of 1991 |
1st Jan 1992 – 31st Dec. 1992 |
• 35% (Decree changing rate from 40%- 35% was passed in 1993) |
1st Jan.1993 – 31st Dec.1995 |
• 35%
• 20% Small business rate 2%Educational Tax |
1st Jan 1996 – Date (2008) |
• 30%
• 20% Small business rate 2%Educational Tax |
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