PERSONAL INCOME TAX IN NIGERIA
STUDENT SHOULD KNOW THE FOLLOWING · CONTRACT OF SERVICE AND CONTRACT FOR SERVICES · -COMPUTATION OF PERSONAL INCOME TAX · -RELIEFS AND ALLOWANCES FOR PITA CONTRACT OF SERVICE IS EMPLOYMENT AND ARE PAID SALARY. The manner specified in the employment letter.(AYB)-ACTUAL YEAR BASIS This is subject to employment laws CONTRACT FOR SERVICES Contract for services is self-employment .fee, commission etc.(PYB)-PRECEEDING YEAR BASIS It is based on the terms of contract and can be terminated at will. · RELIEFS AND ALLOWANCES AND TAX EXEMPT DEDUCTIONS 1. CONSOLIDATED ALLOWANCES= 20%+200,000NGN or 1% OF GROSS EMOLUMENT WHICH EVER IS HIGHER. 2. PENSION FROM PENSION REFORMS ACT2014 =8% FOR EMPLOYEE AND 10 PERCENT FOR EMPLOYER. = 15 OR MORE STAFF 3. NHI...