youtube.com/watch?v=gqviRp1k2VQ&feature=youtu.be
WE recently hosted an engagement sesion on the implementation of the Tax Reform Acts for HR, Payroll, CFOs and Tax Managers, in collaboration with the Joint Revenue Board (JRB). We thank the nearly 15,000 people that registered for the session. For those who could not join us live due to the virtual webinar capacity limitation, we have provided the full session recording below.
𝐊𝐞𝐲 𝐒𝐞𝐬𝐬𝐢𝐨𝐧 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬 𝘌𝘹𝘦𝘮𝘱𝘵𝘪𝘰𝘯 𝘧𝘰𝘳 𝘮𝘢𝘯𝘺 𝘸𝘰𝘳𝘬𝘦𝘳𝘴: The new laws protect low-income earners with automatic exemption for anyone earning the national minimum wage or less. Where deductible contributions and rent relief are taken into account, employees earning up to ₦100,000 per month may also see their tax liability drop to zero.
𝘍𝘪𝘴𝘤𝘢𝘭 𝘧𝘦𝘥𝘦𝘳𝘢𝘭𝘪𝘴𝘮: Personal Income Tax remains payable to the relevant State Internal Revenue Services (SIRS), not the NRS. All revenue agencies will work together under the Joint Revenue Board to ensure a harmonised and seamless experience for taxpayers.
𝘗𝘢𝘳𝘵𝘯𝘦𝘳𝘴𝘩𝘪𝘱 𝘐𝘯𝘤𝘰𝘮𝘦: Taxes for individuals in a partnership are payable to each partner’s state of residence.
𝘊𝘰𝘮𝘱𝘦𝘵𝘪𝘵𝘪𝘷𝘦 𝘳𝘦𝘮𝘰𝘵𝘦 𝘸𝘰𝘳𝘬 𝘵𝘢𝘹 𝘳𝘦𝘨𝘪𝘮𝘦: Nigeria is now more competitive for global talent. Foreign employers are no longer deemed taxable in Nigeria solely because they have employees working remotely in the country.
𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐚𝐥𝐢𝐬𝐢𝐧𝐠 𝐭𝐡𝐞 𝐍𝐞𝐰 𝐏𝐀𝐘𝐄 𝐂𝐨𝐦𝐩𝐮𝐭𝐚𝐭𝐢𝐨𝐧 To ensure that individuals benefit from the pro-workers provisions of the new tax laws, payroll managers are encouraged to follow the process below:
Step 1 – Start with gross income
Step 2 – Add benefits-in-kind (if applicable)
Step 3 – Grant reliefs for pension, NHIS, NHF etc
Step 4 – Apply rent relief (20% of actual rent paid capped at ₦500,000)
Step 5 – Exempt the first ₦800,000 (taxed at 0%) and apply progressive rates thereafter.
While the top marginal rate is 25%, the effective rate is much lower due to these deductions.
𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐟𝐢𝐥𝐢𝐧𝐠 𝐝𝐞𝐚𝐝𝐥𝐢𝐧𝐞𝐬: – Employer annual returns: Due by 31 January each year, covering employees’ emoluments and tax deductions. – Individual self-assessment return: To be filed by every taxable individuals including employees not later than 31 March covering all income sources. – Tax incentives return: A new requirement for beneficiaries of specific tax incentives. Watch the full recording here: https://youtu.be/gqviRp1k2VQ
