13th month is a bonus, theres is no tax on that. In my place of work, the 13th month is just ur basic salary without the allowances and so no tax is placed on it, we see it like Christmas bonus.
Just like ur leave allowance is not taxable so also is the 13th month, that's per my organization sha and I strongly believe that 13th month shouldn't be taxable.

praxs:


Can I have reference? I could be wrong but I thought bonuses are exempted from tax

Bonuses are taxable income

ednut1:
i work for a firm who is an aunthority in tax . All ur allowances and bonus are taxable jor. Except tins like per diem, travel reimbursebles

Well the 13th month should be like a bonus e.g. holiday allowance. I see no reason why it should be taxed. Its an appreciation to encourage the employee. Like I said earlier, mine don't deduct.

Ayauche:
13th month is a bonus, theres is no tax on that. In my place of work, the 13th month is just ur basic salary without the allowances and so no tax is placed on it, we see it like Christmas bonus.
Just like ur leave allowance is not taxable so also is the 13th month, that's per my organization sha and I strongly believe that 13th month shouldn't be taxable.

Your company is actually cheating the government. What is the name of the company?

Ephort:

Bro, it's taxable according to the Nigerian Law (Personal Income Tax Act). However, so many organizations don't pay tax on it. In fact, some organizations don't pay tax on the total salary which is why some of them have two salary accounts; one for upfronts, another for end of the month. They remit only on the end of the month's salary.

That is salary. 13th month shoulder not be referred to as salary. Its like a bonus ans not taxable.

Am just here to read beautiful comments and learn more...

FatokiFemi48:


I'm being paid on monthly basis which is regular.
Mind you if your employer denies your 13th month salary, then it's obvious he's denying you your right as against Nigeria labour law. It may not necessarily reflect in your appointment letter but labour law backs it up.
You may Google out Nigeria labour law to view for yourself if you still in doubt.

For the record, 13month salary is not statutory in Nigeria. It is not obligatory that such payment is made. Some organizations in Nigeria pay 13th month based on management approval as Christmas bonus to employees, collective bargaining or by a contract of employment between employers and their employees. I would say, it is borne out of magnanimity and motivation to employees. It's one of the measures that could improve workers' well-being. The overall value of the 13th month is to enhance better staff performance and support them during the festive periods. 13th month salary is not taxable.. If at all there is any tax, WHT would be appropriate.

Suko110:
Its a gift its suppose to be exempted from tax

Gifts or BIK(BENEFITS IN KIND) are taxable
13month is part of your emoluments, in that case,it is taxable

Bigsteveg:

Well the 13th month should be like a bonus e.g. holiday allowance. I see no reason why it should be taxed. Its an appreciation to encourage the employee. Like I said earlier, mine don't deduct.

ur company is not compliant. Wait till LIRS comes for tax audit. Una go pay . Bonus is taxable

Section (3) of the amended Personal Income Tax Act (PITA) defines
income chargeable to include “… any salary, wage, fee, allowance or other gain or profit from
employment including compensations, bonuses, premiums, benefits or other perquisites allowed, given
or granted by any person to any temporary or permanent employee other than so much of any sums or
expenses incurred by him in the performance of his duties, and from which it is not intended that the
employee should make any profit or gain".

praxs:


Can I have reference? I could be wrong but I thought bonuses are exempted from tax

bonuses are not exempted. 14th month is taxable. 13th month is ur exact basic momthly salary on your appointment letter excluding any allowances.

ednut1:
i work for a firm who is an aunthority in tax . All ur allowances and bonus are taxable jor. Except tins like per diem, travel reimbursebles

are you centrally located in Nigeria

ednut1:
i work for a firm who is an aunthority in tax . All ur allowances and bonus are taxable jor. Except tins like per diem, travel reimbursebles

are you centrally located in Nigeria

joeyswift:
People misinterpret their leave allowance as the 13th month salary. When you go on leave you are paid an extra salary as your eave allowance. But in a situation where u do not go on leave throughout the year,the allowance is paid at the end of the year and we assume its the 13th month salary

Seems you're mixing up something here. Leave allowance differs from 13th month salary. You're being cheated in style if your leave allowance is termed as your 13th month salary by your employer. I work with a multinational coy here in Nigeria where it abides with Nigeria labour law working conditions. I observe my annual leave each calendar year while earning both my leave allowance and 13th month salary annually.

First thing is to understand what is 13th month bonus?

This is a compensation given to an employee that has worked in a company after a 1 year as a member of staff.

This compensation is not a must but an appreciation to an employees to encourage them for an efficient service in the coming year most especially when the company made profit and more clientele in the given year.

This 13th month bonus is not statutory according to our laws hence tax is evaded and no deductions what so ever should be done on it by any company paying such, b
ut the employees should be made to understand the company places high values in the employees of the company.

This is my 12 years in Aviation industry and over the years 13th months bonus has been paid with no tax or deductions on it so if any company deduct tax or any other deductions is basically wrong hence employees core values are not appreciated.

For further clarification whatsapp me 08032387510.

pls i earn 50,000 naira per month as my gross. pls how much will be my tax?

What is 13th month salary? The amount of money you earn from your employer at the end of the 12th calender year equivalent to your monthly salary. Isn't it? This is not taxable bro. Maybe it is for the civil servants I can't say but for the private organisations, It is not and is called "end of the year bonus." To the best of my knowledge though.

Bigsteveg:

That is salary. 13th month shoulder not be referred to as salary. Its like a bonus ans not taxable.

bonus are taxed. Only dividend and interests that are not taxed. Bonus and other allowances are subject to tax

ruffbamreal:
What is 13th month salary? The amount of money you earn from your employer at the end of the 12th calender year equivalent to your monthly salary. Isn't it? This is not taxable bro. Maybe it is for the civil servants I can't say but for the private organisations, It is not and is called "end of the year bonus." To the best of my knowledge though.

the best of your knowledge isn't enough. You haven't read the PIT ACT. All allowances and bonues are taxable income. It is an income and is subject to tax

Immaangel2:
pls i earn 50,000 naira per month as my gross. pls how much will be my tax?

Do you pay for pension? NHS, and NMO/LAP?

I can help you calculate your PAYE but I need to know if you pay the above named.

ednut1:
ur company is not compliant. Wait till LIRS comes for tax audit. Una go pay . Bonus is taxable

Lol, don't mind them. All these English wouldn't save them. PIT ACT is there, yet they've refused to read

Bigsteveg:

That is salary. 13th month shoulder not be referred to as salary. Its like a bonus ans not taxable.

Bonuses, allowances and benefits are all taxable. See section 3 (b) Personal Income Tax Act.

Bigsteveg:

13th month salary is not taxable, i also receive same from my company every year and its paid in full. 13th month is a bonus, that is why some companies dont pay it

. 13th month salary is taxed. Your 13th month salary is higher than your normal salary not because it is not taxed but because 8% pencom is not deducted from 13th month salary. Get further clarification from your accountant

Agwaso:
. 13th month salary is taxed. Your 13th month salary is higher than your normal salary not because it is not taxed but because 8% pencom is not deducted from 13th month salary. Get further clarification from your accountant

absolutely correct.

mrphysics:

Do you pay for pension? NHS, and NMO/LAP?

I can help you calculate your PAYE but I need to know if you pay the above named.

yesi pay for health insurance and it is 1k per month

Immaangel2:


yesi pay for health insurance and it is 1k per month

Only health insurance

mrphysics:

Only health insurance

health
tax
and other internal bills like staff welfare
pensions is 8% of my salary. and my gross income is 70k

This pains me becoz my gross is 450,000.. About 100,000 goes to the useless govt as tax. Paying me the gross as my 13month instead of net will at least bring smile in my face

SamuelAnyawu:
Among NGOs here it is a gift.. just an end of year bonus this is why i love NGOs like PLAN, IRC,FHI

Hello bro, please I will love to work with a very good NGO, how do i go aboiut it,, my email is victorannavi@gmail.com, thanks