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Nairaland Forum / Nairaland / General / Career / Is 13th Month Salary Taxable (17135 Views)
How Do People Survive On 30k Per Month Salary In Nigeria / Are Christmas Gifts To Employees Taxable? / Enugu Workers Receive 13th Month Salary (2) (3) (4)
Re: Is 13th Month Salary Taxable by Ayauche(f): 9:08am On May 22, 2018 |
13th month is a bonus, theres is no tax on that. In my place of work, the 13th month is just ur basic salary without the allowances and so no tax is placed on it, we see it like Christmas bonus. Just like ur leave allowance is not taxable so also is the 13th month, that's per my organization sha and I strongly believe that 13th month shouldn't be taxable. |
Re: Is 13th Month Salary Taxable by Boss13: 9:18am On May 22, 2018 |
praxs: Bonuses are taxable income 1 Like |
Re: Is 13th Month Salary Taxable by Bigsteveg(m): 9:18am On May 22, 2018 |
ednut1:Well the 13th month should be like a bonus e.g. holiday allowance. I see no reason why it should be taxed. Its an appreciation to encourage the employee. Like I said earlier, mine don't deduct. |
Re: Is 13th Month Salary Taxable by Boss13: 9:19am On May 22, 2018 |
Ayauche: Your company is actually cheating the government. What is the name of the company? |
Re: Is 13th Month Salary Taxable by Bigsteveg(m): 9:19am On May 22, 2018 |
Ephort:That is salary. 13th month shoulder not be referred to as salary. Its like a bonus ans not taxable. |
Re: Is 13th Month Salary Taxable by fabulous986: 9:22am On May 22, 2018 |
Am just here to read beautiful comments and learn more... |
Re: Is 13th Month Salary Taxable by Koolking(m): 9:38am On May 22, 2018 |
FatokiFemi48: For the record, 13month salary is not statutory in Nigeria. It is not obligatory that such payment is made. Some organizations in Nigeria pay 13th month based on management approval as Christmas bonus to employees, collective bargaining or by a contract of employment between employers and their employees. I would say, it is borne out of magnanimity and motivation to employees. It's one of the measures that could improve workers' well-being. The overall value of the 13th month is to enhance better staff performance and support them during the festive periods. 13th month salary is not taxable.. If at all there is any tax, WHT would be appropriate. 1 Like |
Re: Is 13th Month Salary Taxable by Mykl07(m): 9:47am On May 22, 2018 |
Suko110: Gifts or BIK(BENEFITS IN KIND) are taxable 13month is part of your emoluments, in that case,it is taxable 2 Likes |
Re: Is 13th Month Salary Taxable by ednut1(m): 9:52am On May 22, 2018 |
Bigsteveg:ur company is not compliant. Wait till LIRS comes for tax audit. Una go pay . Bonus is taxable 1 Like |
Re: Is 13th Month Salary Taxable by teebantee(m): 10:45am On May 22, 2018 |
Section (3) of the amended Personal Income Tax Act (PITA) defines income chargeable to include “… any salary, wage, fee, allowance or other gain or profit from employment including compensations, bonuses, premiums, benefits or other perquisites allowed, given or granted by any person to any temporary or permanent employee other than so much of any sums or expenses incurred by him in the performance of his duties, and from which it is not intended that the employee should make any profit or gain". 1 Like |
Re: Is 13th Month Salary Taxable by oloworulz(m): 10:50am On May 22, 2018 |
praxs:bonuses are not exempted. 14th month is taxable. 13th month is ur exact basic momthly salary on your appointment letter excluding any allowances. |
Re: Is 13th Month Salary Taxable by chigoziri2403(m): 10:56am On May 22, 2018 |
ednut1:are you centrally located in Nigeria ednut1:are you centrally located in Nigeria |
Re: Is 13th Month Salary Taxable by Nobody: 11:03am On May 22, 2018 |
joeyswift: Seems you're mixing up something here. Leave allowance differs from 13th month salary. You're being cheated in style if your leave allowance is termed as your 13th month salary by your employer. I work with a multinational coy here in Nigeria where it abides with Nigeria labour law working conditions. I observe my annual leave each calendar year while earning both my leave allowance and 13th month salary annually. |
Re: Is 13th Month Salary Taxable by aviationguy: 11:30am On May 22, 2018 |
First thing is to understand what is 13th month bonus? This is a compensation given to an employee that has worked in a company after a 1 year as a member of staff. This compensation is not a must but an appreciation to an employees to encourage them for an efficient service in the coming year most especially when the company made profit and more clientele in the given year. This 13th month bonus is not statutory according to our laws hence tax is evaded and no deductions what so ever should be done on it by any company paying such, b ut the employees should be made to understand the company places high values in the employees of the company. This is my 12 years in Aviation industry and over the years 13th months bonus has been paid with no tax or deductions on it so if any company deduct tax or any other deductions is basically wrong hence employees core values are not appreciated. For further clarification whatsapp me 08032387510. 1 Like |
Re: Is 13th Month Salary Taxable by Immaangel2: 12:04pm On May 22, 2018 |
pls i earn 50,000 naira per month as my gross. pls how much will be my tax? |
Re: Is 13th Month Salary Taxable by Nobody: 1:22pm On May 22, 2018 |
What is 13th month salary? The amount of money you earn from your employer at the end of the 12th calender year equivalent to your monthly salary. Isn't it? This is not taxable bro. Maybe it is for the civil servants I can't say but for the private organisations, It is not and is called "end of the year bonus." To the best of my knowledge though. |
Re: Is 13th Month Salary Taxable by mrphysics(m): 4:09pm On May 22, 2018 |
Bigsteveg:bonus are taxed. Only dividend and interests that are not taxed. Bonus and other allowances are subject to tax |
Re: Is 13th Month Salary Taxable by mrphysics(m): 4:10pm On May 22, 2018 |
ruffbamreal: the best of your knowledge isn't enough. You haven't read the PIT ACT. All allowances and bonues are taxable income. It is an income and is subject to tax |
Re: Is 13th Month Salary Taxable by mrphysics(m): 4:12pm On May 22, 2018 |
Immaangel2:Do you pay for pension? NHS, and NMO/LAP? I can help you calculate your PAYE but I need to know if you pay the above named. |
Re: Is 13th Month Salary Taxable by mrphysics(m): 4:15pm On May 22, 2018 |
ednut1:Lol, don't mind them. All these English wouldn't save them. PIT ACT is there, yet they've refused to read |
Re: Is 13th Month Salary Taxable by Ephort: 6:14pm On May 22, 2018 |
Bigsteveg:Bonuses, allowances and benefits are all taxable. See section 3 (b) Personal Income Tax Act. |
Re: Is 13th Month Salary Taxable by Agwaso: 9:20pm On May 22, 2018 |
Bigsteveg:. 13th month salary is taxed. Your 13th month salary is higher than your normal salary not because it is not taxed but because 8% pencom is not deducted from 13th month salary. Get further clarification from your accountant 1 Like |
Re: Is 13th Month Salary Taxable by Nobody: 9:58pm On May 22, 2018 |
Agwaso: absolutely correct. |
Re: Is 13th Month Salary Taxable by Immaangel2: 9:16am On May 23, 2018 |
mrphysics: yesi pay for health insurance and it is 1k per month |
Re: Is 13th Month Salary Taxable by mrphysics(m): 10:33am On May 23, 2018 |
Immaangel2:Only health insurance |
Re: Is 13th Month Salary Taxable by Immaangel2: 8:17pm On May 24, 2018 |
mrphysics:health tax and other internal bills like staff welfare pensions is 8% of my salary. and my gross income is 70k |
Re: Is 13th Month Salary Taxable by praxs(m): 8:57pm On May 24, 2018 |
This pains me becoz my gross is 450,000.. About 100,000 goes to the useless govt as tax. Paying me the gross as my 13month instead of net will at least bring smile in my face |
Re: Is 13th Month Salary Taxable by Belemalov: 12:04am On May 26, 2018 |
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