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Your Personal Income Tax And Its Amendment by OfflineDirectry(m): 3:12pm On Apr 13, 2015
YOUR PERSONAL INCOME TAX AND ITS AMENDMENT

As we all know or some of us know or some may ask what is income tax? Simply Persona Income Tax (PIT) is the tax that is imposed on incomes of individual, communities and families. This is in other word is the income tax. It is usually charged on the incomes due to a trustee or an estate as income tax. The personal income tax was amended by the personal income tax. The changes on the Personal Income Tax come as a result of many years of agitation by the citizens of Nigeria, wanting it to be in line with the present day economic realities. This was also targeted to assist in the increase of compliance levels and the amount of income tax voluntarily paid through online tax services or just collected by the Nigerian government. There are several highpoints of the new personal income tax legislation are highlighted in this following ways.

The contributions and incomes derived from the national housing fund (NHF) the National Health Insurance Scheme (NHIS), life assurance policies, the National Pension Scheme and Gratuities are now formally exempted in one form of legislation, to charge under the 2011 Personal Income Tax (Amendment) Act.

In the computation of the gross emoluments of all employees, the employee’s wages, salaries, allowances, gratuities, superannuation and any other income derived by reason of employment shall therein be derived by reason and shall be computed for the purpose of arriving at the employee’s Payee tax that will be remitted to the revenue authorities.

The income, profit or gain of an individual shall be deemed to be derived from Nigeria and liable to personal income tax in Nigeria if the employer of the individual is in Nigeria or has a fixed base for doing business in Nigeria. Also, where the duties of any employment are wholly or partially performed in Nigeria or have a fixed base for doing business in Nigeria.

Failure or the refusal to keep adequate and the proper books of accounts for the purpose of computing personal income tax is a very big offence. This on the conviction carries a penalty of N50, 000 for individuals and N500, 000 for corporate employers. The failure to deduct Personal Income Tax, where a person, employer or corporation obligated to deduct tax or having deducted Personal Income Tax fails to remit the tax deducted to the relevant revenue authorities within 30 days from the days the amount was deducted or obligation to deduct the tax arose, such a defaulter shall be obligated to pay (i) there is a penalty of an amount of 10% of the Personal Income Tax not deducted or remitted in addition. (ii) Paying the tax withheld or not remitted (iii) paying interest at the prevailing monetary policy rate of the Central Bank of Nigeria on the latter of the two items.

The amendment now allows the accountant general of the federal republic of Nigeria to deduct directly from the budgetary allocation of any government agency. Ministry any un-withheld and unremitted taxes and to transfer such deductions to the beneficiary State Government upon a written request by the State Government

www.innerkonsult.com Professional Tax & Accounting service in Lagos Nigeria Tell (WhatsApps) 08038460036

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