What constitutes gross emoluments under personal income tax?

What constitutes gross emoluments under personal income tax?

Gross emolument (or income) is defined to include benefits in kind, gratuities, superannuation and any other incomes derived solely by reason of employment.

Who are those exempted from paying tax in Nigeria?

Dividends, interest, rents, and royalties earned abroad and brought into Nigeria through government-approved channels are exempt from Nigerian tax; otherwise, the income is taxable at the CIT rate applicable based on the classification of the company (i.e. small, medium, or large) and tertiary education tax at 2%.

What is the new minimum tax rate in Nigeria?

0.25%
The Finance Act 2020 has reduced the minimum tax rate to 0.25% for the two tax returns that are due between 1 January 2020 and 31 December 2021.

What are the taxable income in Nigeria?

The taxable income band ranges from NGN300,000 to above NGN3. 2 million in a year….Tax rates.

Annual taxable income (NGN) Rate Tax payable per annum (NGN)
First NGN300,00 7% 21,000
Next NGN300,000 11% 33,000
Next NGN500,000 15% 75,000
Next NGN500,000 19% 95,000

How is taxable income calculated?

What are the steps to determine slab of your taxable income in India?

  1. Calculate your gross salary by adding Dearness Allowance, House Rent Allowance, Transport Allowance, Special Allowance to your basic pay.
  2. Then deduct the exemptions of HRA, professional tax and standard deduction from the gross salary.

How is PAYE calculated?

  1. Projected total remuneration = Annual equivalent of regular income + irregular income = R120,000 + R20,000 = R140,000.
  2. Tax calculated on R140,000 as per tax tables = R11,133.
  3. PAYE payable on irregular income = Tax on total income – Tax on regular income = R11,133 – R7,533 = R3,600.

Is government grant taxable in Nigeria?

Government grants shall be treated for tax purposes in line with the position of IAS 20 – Government Grants. b. The grant is liable to tax when it is received whether they are conditional or unconditional grants.

How much is VAT in Nigeria?

VAT is a consumption tax paid on all goods and services provided in or imported into Nigeria. VAT, which is currently charged at the rate of 7.5% is payable by individuals, companies, and government agencies.

How much is PAYE?

As a general rule of thumb, you should be paying 0% on any earnings up to £12,500, 20% on anything between £12,501 – £50,000 and 40% on earnings between £50,001 – £150,000. You pay 45% on anything you earn over £150,001.

What is the tax for 7 lakhs?

New income tax slabs for individuals for FY 2020-21

Income Tax Slab Tax Rate
From Rs.5,00,001 to Rs.7,50,000 10% of the total income that is more than Rs.5 lakh + 4% cess
From Rs.7,50,001 to Rs.10,00,000 15% of the total income that is more than Rs.7.5 lakh + 4% cess

What income is tax free?

Rebate of up to Rs 12,500 is available under section 87A under both tax regimes. Thus, no income tax is payable for total taxable income up to Rs 5 lakh in both tax regimes. Rebate under section 87A is not available for NRIs and Hindu Undivided Families (HUF)

How is monthly salary calculated?

Divide your annual salary by 12 to calculate your salary per month. For example, divide $28,579.20 by 12 to calculate a salary of $2,381.60 per month.