Hey everyone,

I wanted to share some insights on how income tax works in Nigeria, both for individuals and companies. If you're dealing with taxes, it's essential to understand the relevant laws and regulations.

For Individuals:
Personal Income Tax in Nigeria is governed by the Personal Income Tax Act (PITA). This tax is progressive, so the rate you pay increases with your income. Taxable income includes things like salaries, wages, bonuses, pensions, and other benefits. It's really important to know about the different allowances and exemptions available to ensure you're calculating your tax correctly.

For Companies:
For companies, the Companies Income Tax Act (CITA) is the main legislation. The standard rate for Companies Income Tax (CIT) is 30%. However, some companies, especially smaller businesses, might be eligible for lower rates or even exemptions. To stay compliant, companies need to keep proper documentation and meet all regulatory requirements.

I hope this helps clarify how income tax works in Nigeria. Feel free to ask if you have any questions or need further details!

Read more about it here - https://blog.taxpal.africa/a-guide-to-understanding-income-tax-in-nigeria/