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nigeria personal Income Tax amendment Act 2011 

 

In many respects, it was  major amendment to Personal Income Tax Act 2004. The president, in mid December 2011 signed into law the new PERSONAL INCOME TAX AMENDMENT ACT 2011.
The law has scraped the old relief systems that has no relationship with modern day earnings. It has, also,  increased relief for all taxable person(s)
Highlights of the new law include:
1.          Consolidated Relief  -  N200,000.00 or 1% of gross Income whichever is higher
2.          Plus  20% of Gross Income
3.        Minimum tax is 1% of Gross pay. 
 
The following deductions are not Taxable (Tax Exempts):
1.       Pension deductions
2.       National Housing Fund deductions
3.       Life Assurance Payments
4.       National health Insurance scheme and
5.       Gratuity
 
What this mean is that if you have any of the above deduction in any payroll month, the amount becomes part of your tax relief !
 
 
The new Tax Table is:
 
 
Range
 
 
First N300,000
7%
 
Next N300,000
11%
 
Next N500,000
15%
 
Next N500,000
19%
 
Next N1,600,000
21%
 
Above N3,200,000
24%
 
The Good news is that all taxable persons would benefit immensely from the new tax law.  You should be paying Lower tax compared with the old law. The reduction in tax payable can be as high as 57%.  However, high income earners may pay slightly higher tax relative to their taxable income!
 
 

 
Gross Taxable Income
(per month )
**Tax Payble -
Old Tax Law
**Tax Payble-
New Tax Law
1
65,000.00
6,265.75
2,886.67
2
75,000.00
8,765.75
3,766.67
3
100,000.00
15,015.75
6500.00
4
150,000.00
27,515.75
12,966.7
5
200,000.00
40,015.75
20,766.67
6
650,000.00
152,515.75
            103,466.67
 
 
 
 

Note:       ** Full relief, excluding pension, Life Assurance, NHF and NHIS was used to calculate this tax
 
 
 
 *****   WE HAVE PROVIDED A FREE TEMPLATE  AT OUR HOME PAGE TO ENABLE YOU CALCULATE TAX USING THE PROVISIONS IN THE NEW  PERSONAL INCOME TAX ACT 2011.  PLEASE CHECK IT OUT *******
 
 
The Impart of the New Law on eVisualPayroll
eVisualPayroll is 100% compliant with the new law.  You ay contact us, if you need any assistance
 

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