Employee employed in nigeria

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Jaspal Singh

Jaspal Singh (Querist)
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22 August 2015 An NRI employee is employed at nigeria What is the tax treatmnt of Salary recieved at Nigeria

Ishan Shah

Ishan Shah (Expert)
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22 August 2015 Dear Jaspal,

Good day..!

Here is your solution..!

Nigeria is one of the country where Resident and Non Resident need to pay tax on income earned, (exceptions are there, if foreign earning converted in LCY after Nigerian Bank Approval, then it is not taxed)

Rates. The following rates apply to residents and nonresidents.
Taxable income Rate Tax Cumulative tax
NGN % NGN NGN
First 300,000 7 21,000 21,000
Next 300,000 11 33,000 54,000
Next 500,000 15 75,000 129,000
Next 500,000 19 95,000 224,000
Next 1,600,000 21 336,000 560,000
Above 3,200,000 24 — —

Minimum tax of 1% of gross income is due, even if applicable reliefs reduce tax liability beneath that level.

The following deductions and exemptions apply:
• Contribution to Nigerian Pension Scheme
• Contribution to National Health insurance Scheme
• Contribution to National Housing Fund
• Interest paid on loan in respect of owner-occupied residential
home
• Compensation for loss of office
Individuals whose annual taxable income is NGN30,000 or less are exempted from the requirement to file a tax return.

Still there are many exemption which is not covered here (Like Gratuity received are fully exempt from tax, loss of business profit and etc).

If you are looking for specific rule, contact me on CCI without any hesitation.

Thanks,
Regards,
Ishan