Visual HR

 Since the promulgation of the Nigerian PITA tax law in December 2011, we have received hundreds of enquiries on how to calculate Nigerian payroll tax, using the provisions of the new tax law. These enquirers ask us very basic questions and in some instances, the rules for calculating Nigerian PAYE Tax. Some persons want to know what item on their payslip is taxable, whilst others ask such questions as “is my bonus or leave pay taxable?” .  These questions will be answered and in addition, we would provide very deep insight into methods for calculating Nigerian payroll tax.

 Calculating PAYE tax payable based on the new PITA tax law 2012 can be very cumbersome, especially if you are not an accountant or a payroll expert. However, it is pretty easy to read off tax payable on a tax calculation table.

The long awaited amendment to the Nigerian Personal Income Tax Act 2004 came into being in December 2011, without much fanfair. This Act, provide the Nigerian employee a huge tax cut. In the history of Nigeria,  among several other tax law promulgations todate, this is the only time the Government has positively, legislated a law that put money in the hands of employees!