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The personal income tax in Nigeria stands at 24% as per the 2011 amendment. The older rates that were imposed by the government have also been revised in the 2011 amendment and it has made sure that the person earning over 3.2 M Nigerian Naira are charged at the revised rate of 24% as compared to the older rates for which the threshold was set at 1.6 M Nigerian Naira and the rate of tax was 25%. There are several other changes that have been made in the personal income tax act. Few of them are listed as below:
Following is a table that has been drawn specifically to highlight and segregate all the changes that have been made within the personal income tax law in 2011.
|Old Bands||Old Rates||New Bands||New Rates|
|FirstÂ Â Â Â Â N30,000||5%||FirstÂ Â Â Â Â Â Â N300,000||7%|
|NextÂ Â Â Â Â N30,000||10%||NextÂ Â Â Â Â Â Â N300,000||11%|
|NextÂ Â Â Â Â N50,000||15%||NextÂ Â Â Â Â Â Â N500,000||15%|
|NextÂ Â Â Â Â N50,000||20%||NextÂ Â Â Â Â Â Â N500,000||19%|
|AboveÂ Â N160,000||25%||NextÂ Â Â Â Â Â Â N1,600,000||21%|
|AboveÂ Â Â Â N3,200,000||24%|
The amendment in the act was finalized on 14 June 2011 but it was presented to the public in the 4th quarter of the same year which made it almost impossible for some personal income tax payers to file the returns and for which the government was severely criticized. All the tax experts of the country also criticized the government saying that the amendment should have been presented to the public on the date it was formulated, drafted and finalized. All the expatriates also fell prey to personal income tax especially the ones the countries of which did not have a double tax agreement with Nigeria.
www.InnerKonsult.comÂ Â Nigeria Accounting, Tax, Audit & Investigation serviceÂ 08038460036,