Income tax is imposed on employees in Nigeria, and includes any salaries, wages, gains or profits – including bonuses, premiums and benefits – derived from employment. Income tax is processed using the PAYE system and reported each month to the State Internal Revenue Service (SIRS). All Nigerian tax ‘residents’ are liable for income tax – that is, employees with duties of employment performed wholly or partly in Nigeria for up to six months per year. Nigerian tax residents are taxed on all income sourced from Nigeria, and all worldwide income.
Tax rates in Nigeria are graduated across income bands, ranging from 7-24%. Income thresholds are as follows:
>> Up to 300,000 naira: 7%
>> Up to 600,000 naira: 11%
>> Up to 1,110,000 naira: 15%
>> Up to 1,600,000 naira: 19%
>> Up to 3,200,000 naira: 21%
>> Over 3,200,000 naira: 24%
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