funkystanl:


There is a possibility, if the annual salary is about 300k. The marginal {effective} tax rate will be about 5% after taking into consideration of CRA {consolidated relief allowance} and other statutory deductions.

Remember PAYE is on a graduated scale and the tax rate is applied on the taxable pay after some reliefs have been deducted.

It's 7%.

erico2k2:

NO he does not reason even if he managed to get it sorted the tax still goes to the government of the day, so who pays for his time and resources used in achieving this? see the logic? all he needs to make sure is that his pay slip carries he tax deduction that's it. However what all you guys working in 9ja need to fight for is make sure your pension deduction is remitted. that's the real deal.

I beg to slightly disagree. I understand and agree with you that resources will be wasted for a return that does go directly to the OP. However, the OP is looking at a future {which may just be 2019} where he needs something from the government/or the people... Its important we start getting things right in this countryb2ithiut necessarily looking at the immediate/direct implication.

Adekdammy:


It's 7%.

Yeah. 7% of what? Taxable pay. Which is the gross salary less reliefs. If u deduct the relief from the gross u have some amount less than 300k which you apply 7% upon. To get the tax. Now divide that tax amount by 300k you will not get 7%. That's why it's called effective tax rate

funkystanl:


I beg to slightly disagree. I understand and agree with you that resources will be wasted for a return that does go directly to the OP. However, the OP is looking at a future {which may just be 2019} where he needs something from the government/or the people... Its important we start getting things right in this countryb2ithiut necessarily looking at the immediate/direct implication.

I get your point, but what would he be looking for that requires he make sure his past employers paid his tax into the system? I think all he needs make sure of is that the correct tax was deducted, the part of remittance is the sole duty of the government. For any tax verification you are only required to show your payslip nothing more. But I'm sure if there was other reasons to this then I don't know.

funkystanl:


There is a possibility, if the annual salary is about 300k. The marginal {effective} tax rate will be about 5% after taking into consideration of CRA {consolidated relief allowance} and other statutory deductions.

Remember PAYE is on a graduated scale and the tax rate is applied on the taxable pay after some reliefs have been deducted.

If Gross Annual Salary is #300,000 or below, then the tax rate will be 1%.

If after taking consideration of Pension, NHF and Consolidated reliefs, the taxable income is #300,000, then the tax rate should be 7%.

erico2k2:

NO he does not reason even if he managed to get it sorted the tax still goes to the government of the day, so who pays for his time and resources used in achieving this? see the logic? all he needs to make sure is that his pay slip carries he tax deduction that's it. However what all you guys working in 9ja need to fight for is make sure your pension deduction is remitted. that's the real deal.

It is worth is time, because if he needs to do anything with the government in the nearest future, his evidence of tax would be required. If he is unable to provide evidence, he would be required to pay taxes for the past 3years before he can proceed with what he needs do.

erico2k2:

I get your point, but what would he be looking for that requires he make sure his past employers paid his tax into the system? I think all he needs make sure of is that the correct tax was deducted, the part of remittance is the sole duty of the government. For any tax verification you are only required to show your payslip nothing more. But I'm sure if there was other reasons to this then I don't know.

A payslip? That's not enough. I don't know of any authorised agency that accepts a payslip as proof of tax payment.

why don't you ask us this question while you were still working with the unnamed company. How come you're out with this kind of question now that you have quit? I suggest you should move on in your endeavors since you're no more with the company and this shouldn't be your business anymore, move on, and focus your energy to your new endeavors, this isn't worth your time ok.

funkystanl:


A payslip? That's not enough. I don't know of any authorised agency that accepts a payslip as proof of tax payment.

Pay slip is enough and absolute world wide if you are employed. There is no other proof of tax.

doseni:


It is worth is time, because if he needs to do anything with the government in the nearest future, his evidence of tax would be required. If he is unable to provide evidence, he would be required to pay taxes for the past 3years before he can proceed with what he needs do.

The only evidence you need to provide is your pay slip if you are Employed, if you own your own Biz then its Tax certificate. I stand to be corrected here.

greatman247:
why don't you ask us this question while you were still working with the unnamed company. How come you're out with this kind of question now that you have quit? I suggest you should move on in your endeavors since you're no more with the company and this shouldn't be your business anymore, move on, and focus your energy to your new endeavors, this isn't worth your time ok.

This is way to go if you want to stick and umbrella in the azz of ur employer and open it later ahaha

greatman247:
why don't you ask us this question while you were still working with the unnamed company. How come you're out with this kind of question now that you have quit? I suggest you should move on in your endeavors since you're no more with the company and this shouldn't be your business anymore, move on, and focus your energy to your new endeavors, this isn't worth your time ok.

Why should he move on? He needs to ensure that he gets credit for the taxes he paid. This might come back to hunt him in the nearest future. We should endeavor to do what is right . @ OP, if you need me to help you take up the issue at no cost, you can get across.

Osyxcel:


If Gross Annual Salary is #300,000 or below, then the tax rate will be 1%.

If after taking consideration of Pension, NHF and Consolidated reliefs, the taxable income is #300,000, then the tax rate should be 7%.

Yes you are right but there is a gap in your comment. Based on the personal income tax act, the first 300k {not 300k exactly but the first sum of money up to 300k} of your taxable income is taxable at 7%.

However if your gross is less than {not equal to} 300k then the tax rate is simply 1% of the gross. Without taking deduction for reliefs. The reason for this is because the reliefs granted is based on an amount of about 300k.

connkg:


If there was any deduction, it should reflect on your payslip and your e-tax card (if you have one). Either or both cover government's requirement from you.

how do i get the e card?

erico2k2:

Pay slip is enough and absolute world wide if you are employed. There is no other proof of tax.

I'm surprised. What's the validity of a payslip for taxes?a paylsip that can be falsified. Don't forget what we are talking about here is proof of tax payment... Not earnings.

But if that's what you know and you are sure of... Its fine!

I Think He Is Being Cheated. Companies Incorporated In Nigeria Pay Their Taxes To Federal Govt While Individuals, Sole Prorietorships And Partnerships Pay To The State Govt. So, The First Question Is, Is It A Company, One Man Business Or Partnership? Then, PAYE- Pay As You Earn Collection System Is Conducted In Such A Way That The Employer Deducts Certain Amt With Consideration Of Income Tax Table Provided By The Tax Authorities. Tax Deduction Card Will Be Provided To The Employee. When Leaving An Employment, Employee Leaving Certificate Will Be Given, Which Be Presented At The New Place Of Work. After Payment By An Employer, Tax Authority Issues Employer's Certificate Of Pay And Tax Which Shld B Issud To D Employee At Yr End. This Can B Used By D Employee When Applying For Tax Clearance Certificate! But Unfortunately, Most Employers Don't Do This.

funkystanl:


I'm surprised. What's the validity of a payslip for taxes?a paylsip that can be falsified. Don't forget what we are talking about here is proof of tax payment... Not earnings.

But if that's what you know and you are sure of... Its fine!

When you go for Visa application and Employed, what do you show them?
1 bank statement
2 Pay slip.
As for the bolded once you work PAYE is taken. There is no way you will work and tax is not taken from you, unless you do not work.

lowaist101:
I Think He Is Being Cheated. Companies Incorporated In Nigeria Pay Their Taxes To Federal Govt While Individuals, Sole Prorietorships And Partnerships Pay To The State Govt. So, The First Question Is, Is It A Company, One Man Business Or Partnership? Then, PAYE- Pay As You Earn Collection System Is Conducted In Such A Way That The Employer Deducts Certain Amt With Consideration Of Income Tax Table Provided By The Tax Authorities. Tax Deduction Card Will Be Provided To The Employee. When Leaving An Employment, Employee Leaving Certificate Will Be Given, Which Be Presented At The New Place Of Work. After Payment By An Employer, Tax Authority Issues Employer's Certificate Of Pay And Tax Which Shld B Issud To D Employee At Yr End. This Can B Used By D Employee When Applying For Tax Clearance Certificate! But Unfortunately, Most Employers Don't Do This.

Thank you, very informative. This is same system we have in the Uk just called different names. Here we have tax codes which determines taxable incomes. All I have to do is make sure I have the right tax code. If my employer fails to remit my taxes that is their Biz not mine, the govt will deal with them. I have proof tax was collected from me in my pay slip. When I leave I get a P45 a tax card which I give to my new employer and the circle begins again.

.

erico2k2:

When you go for Visa application and Employed, what do you show them?
1 bank statement
2 Pay slip.
As for the bolded once you work PAYE is taken. There is no way you will work and tax is not taken from you, unless you do not work.

When you are contesting for a political office, or bidding for a government contract or LASTMA guys hold you {as I recently learnt} you can show them your bank statement and payslip as proof of paying taxes, right?

You are missing the point. Depending on the kind of visa you are requesting, the consulate is not really interested in your taxes but proof of financial capability and that's where your payslip would suffice. You need to look at the underlying issue.

funkystanl:


When you are contesting for a political office, or bidding for a government contract or LASTMA guys hold you {as I recently learnt} you can show them your bank statement and payslip as proof of paying taxes, right?

You are missing the point. Depending on the kind of visa you are requesting, the consulate is not really interested in your taxes but proof of financial capability and that's where your payslip would suffice. You need to look at the underlying issue.

ask this, which is bigger tax or wages?
If I was an employee and do not have my own company all I have to show is my pay slip which contains details of my PAYE.( Pay As You Earn)
If I am self Employed then I will need to show proof of paying tax cos I am responsible for my tax payment no one else but if Employed my Boss is, do you see the difference?

erico2k2:

ask this, which is bigger tax or wages?
If I was an employee and do not have my own company all I have to show is my pay slip which contains details of my PAYE.( Pay As You Earn)
If I am self Employed then I will need to show proof of paying tax cos I am responsible for my tax payment no one else but if Employed my Boss is, do you see the difference?

I understand the difference. Note that your employer is only obligated to deduct, and remit the PAYE taxes as a tax agent...and also file the return for compliance. It doesn't take away the fact that its still a Personal income tax.

I will like you to read Section 44 of Personal Income Tax Act (PITA) that requires every individual to file returns of his​/her​ income and this is different from the filing your employer would have done for you​​ (as obligated by the Act). This is something a lot of Nigerians don't do. If we do, then we would have filled a form A showing details including additional income received outside employment income. You will also show your employment income and ask your employer to provide you with proof of payment of your taxes.

I repeat that your payslip is not a proof that taxes have been remitted. Only a tax clearance certificate (TCC) will show that...and to the best of my knowledge there is no authorised agency (solely interested in your payment of taxes) that will request your payslip as proof of compliance.

Backed by Section 85 of the PITA that states that relevant tax authority (RTAs) should issue a tax clearance cert if the tax has been fully paid. Subsection 2 and 4 of the same Section 85 also states that a Ministry, Department or an agency of Government or a commercial bank shall demand for the TCC and shall verify the genuineness by referring same to the issuing tax authority.

The transactions that could lead to request of the TCC includes:
(a) application for Government loan for industry or business;
(b) registration of motor vehicle;
(c) application for firearms licence;
(d) application for foreign exchange or exchange control permission to remit funds outside Nigeria;
(e) application for certificate of occupancy;
(f) application for award of contracts by Government, its agencies and registered companies;
(g) application for approval of building plans;
(h) application for trade licence;
(i) application for transfer of real property;
(j) application for import or export licence;
(k) application for agent licence;
(l) application for pools or gaming licence;
(m) application for registration as a contractor;
(n) application for distributorship;
(o) confirmation of appointment by Government as chairman or member of a public board, institution, commission, company or to any other similar position made by the Government;
(p) stamping of guarantor’s form for a Nigerian passport;
(q) application for registration of a limited liability company or of a business name;
(r) application for allocation of market stalls;
(s) appointment or election into public office.
(t) for change of ownership of vehicle by the vendor;
(u) application for a plot of land;
(v) any other transaction as may be determined from time to time.

You cannot tender a payslip as a proof that you have paid taxes for the transactions highlighted above if the law was to be followed to the letter.

Why do you think expatriates in Nigeria request for their TCCs to take to their home country? Why cant they show only their payslips

Adekdammy:


It's 7%.

Please sir, this is not entirely true, Paye does not have a specific rate. it has graduated rates ie. 7%, 11%, 15%, 19%, 21% & 24% depending on your consolidated income, this is after deducting Consolidated Relief allowance (CRA), Pension, NHF, NHIS etc.

You may have need for tax payment evidence while in paid employment as you move on in life.
Contact your ex-employer's HR for Tax Clearance Certificate. It's non of your business if they remitted to the concerned authority. What you need is an evidence of deduction as an employee.

Everyone Is Right. The Amount To Be Taxed As PAYE Is Not Fixed But Relevant Tax Authority Will Provide An INCOME TAX TABLES. Pay Slip Cannot Be Used As Evidence Of Tax Payment In Nig. Tax Admin Differs Frm Country To Country. Employers R Supposed To Register With The Tax Authority After 6 Mnths Of Commencing Biz. Each Employee Will Hav Tax Deduction Card. D Employee Can Use The Employer's Certificate Of Pay And Tax To Get Tax Clearance Certificate.

If you are not sure then blow whistle naa....call LIRS or FIRS and give them the info of your company and ask if they have been remitting tax. You call as anonymous.

olayemi85:
Please help, I work for a company for almost two years, I just quit the job because of the rate in which they increase our target why reducing our salary and making things difficult for us by each day. But before I quit they deduct each staff salary by 5% as tax expected to be remitted to tax authority but I doubt if this has ever been done, now I just quit, if I need anything from government in future,they may request for my tax certificate or any documents to show I pay my tax, please how do I go about it? Who has any idea of what to do about it? Because I suspect foul play in my company regarding this tax stuff. Thanks for your kind response


Please let the thread grace the front page. Thanks

I know you are asking because you want to access your 25% after 4 months of not getting another job.

Don't mind all the uninformed posters above who thinks law no longer work in Nigeria. Go to your PFA and ask them for a statement. They will print it and you will see if your coy remitted it. If you are using ARM Pensions, PM i will give a link to go about it.

If your coy did not remit your pension, tell your PFA and they will contact your coy on your behalf. Threaten them you will write PEMCOM and see how fast they will remit all.

I am talking from experience. Even though i got my 25% in 3 weeks from my PFA (ARM), my coy is battling with PENCOM because i reported them. Fight it bro, it is your money. PM for further advice

funkystanl:


I disagree with the bolded. We all have a duty to hold employers accountable for taxes {including other statutory deductions} deducted from employees salary. And it's a bit confusing when you said PAYE will be cancelled and turn to PIT... Is PAYE not a type of PIT?

What I think he meant regarding the second part of your comment is that while the OP was an employee, PAYE tax was applicable as the employer had the obligation to deduct and remit on his behalf, which is why employer files annual PAYE returns on employees' behalf and not annual PIT returns (regardless that PAYE is a subset of PIT).

When OP lost employee status, PAYE can no longer be applicable since he has no employer. Now, OP will be required to file PIT returns by himself on any income earned.

The key point is that PAYE deducted is only relevant for an employee. On the other hand, the law requires PIT returns to be filed by every person who earns income in Nigeria regardless of their status.

I think the guy knows what he's saying but only conveyed it in an hasty manner.

mikeywise:

Please sir, this is not entirely true, Paye does not have a specific rate. it has graduated rates ie. 7%, 11%, 15%, 19%, 21% & 24% depending on your consolidated income, this is after deducting Consolidated Relief allowance (CRA), Pension, NHF, NHIS etc.

I am referring to 300, 000 below

ThierryJay:


What I think he meant regarding the second part of your comment is that while the OP was an employee, PAYE tax was applicable as the employer had the obligation to deduct and remit on his behalf, which is why employer files annual PAYE returns on employees' behalf and not annual PIT returns (regardless that PAYE is a subset of PIT).

When OP lost employee status, PAYE can no longer be applicable since he has no employer. Now, OP will be required to file PIT returns by himself on any income earned.

The key point is that PAYE deducted is only relevant for an employee. On the other hand, the law requires PIT returns to be filed by every person who earns income in Nigeria regardless of their status.

I think the guy knows what he's saying but only conveyed it in an hasty manner.

Thanks for the clarification.

Adekdammy:

I am referring to 300, 000 below

oh my bad, ok

For your information, to all those referring to FIRS.


We now have FCT IRS. It deals with all this matters FIRS have handed over such matters to them.