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Tax Professionals Forum - Career (6) - Nairaland

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Re: Tax Professionals Forum by Melian(f): 8:56pm On Oct 05, 2017
Very informative.
Re: Tax Professionals Forum by Melian(f): 2:35pm On Oct 18, 2017
Let's reawaken this thread. We can start by posting our tax issues both in the area of computation and application, ranging from PIT to CIT and have our experts answer us. This thread shouldn't be made to die.
Re: Tax Professionals Forum by Zirah: 9:03pm On Jan 19, 2018
I am thinking since it is now consolidated relief allowance-you add both basic and allowance, apply the graduated income to get taxable income and it is from your gross pay you apply the (8%).


300,000@7%=21,000
300,000@11%=33,000
352,000@15%=52,000
106,800-Annually
106,800/12=8,900-Monthly
Pension 8% of gross pay.
NB:In Lagos state, the minimum tax you can pay is #250,that is, if you are earning 15,000 or less you are paying #250.

Please, I stand to be corrected.

Question. How do one reduce a company's basic salary and allowances and pay little tax.

Wrong! The taxable income isn't N952000 but 952000- 8%*1440000= 836800.

Monthly tax is N7460.

3 Likes

Re: Tax Professionals Forum by Olupita(m): 11:48am On Feb 19, 2018
Hello house,

Please I need a certified member of The Chartered Institute of Taxation of Nigeria to help with being my referee as I've been asked to provide a certified member's number to complete my registration.

Thanks and God bless.
Re: Tax Professionals Forum by profstar(m): 8:42pm On Feb 25, 2018
hello tax gurus,

pls how can i process/get etcc card in lagos

step by step way will be appreciated. thank you in advance

1 Like

Re: Tax Professionals Forum by murchurat(m): 7:06pm On Feb 26, 2018
It's being done online. U can ask Google




profstar:
hello tax gurus,

pls how can i process/get etcc card in lagos

step by step way will be appreciated. thank you in advance
Re: Tax Professionals Forum by adedee14: 9:42am On Mar 04, 2018
Tax gurus. Im having an issue calculating the net pay on a payroll I got my hands on. The payroll had usual Basic, Housing, Transport and other allowances.
My first issue, housing is paid quarterly while employer pension contribution was added to make up the gross pay. How do I treat this?? @ Jarus
Re: Tax Professionals Forum by Exodusontop(m): 11:47am On Apr 12, 2018
Hello house, Please i need CITN materials for PE1-PE3. kindly help me out if u have it. my email: exodusontop@gmail.com
Thanks and God bless.
Re: Tax Professionals Forum by Ademolaononuga: 12:53pm On May 18, 2018
[quote author=Jarus post=14642290]
Your actual PAYE, based on new Personal Income Tax Act (PITA) which took effect June 2012, is calculated thus:

GROSS ANNUAL PAY= 120,000*12 = 1,440,000
Less Reliefs & Allowances
- Pension 7.5% of Annual Basic, Housing & Transport = 792,000*7.5% = 59,400
- Consolidated Relief Allowance = 200,000+ 20%*1,440,000 = 488,000
NB: Monetised medical allowance is not accepted as a relief

TAXABLE PAY = Gross pay - Reliefs = 1,440,000 - 59,400 - 488,000 = 892,600

TAX




Jarus, Sir, I need your help. Good morning to you

Kindly help me with this tax computation


Having gone through the TAX AMMENDMENT ACT through the website as recommended on www.lirs.gov.ng/docs/PITA-Ammendment.pdf and subsequently read through, I would like to ask the following questions:

1. On a total monthly salary of N90,000, where basic salary is 35% or N31500, Housing is 33% or N29700, Transport is 15% or N13500, utility is 5% or N4500, Meal is also N4500, and Entertainment is 7% or N6300. Please, what is the tax due me monthly?

1b. In the event that I earn a bonus of[b] N500,000 in a particular month[/b], What is the tax due me to pay?

Kindly reply me via e-mail at ademolaononuga@gmail.com.

Your response is highly anticipated.

Thank you.
Re: Tax Professionals Forum by Jarus(m): 5:13pm On May 18, 2018
[quote author=Ademolaononuga post=67665355][/quote]

Slot the numbers here and get your answer

http://calculator.com.ng/firs-salary-income-tax-paye-calculator
Re: Tax Professionals Forum by funkyjms: 7:42pm On May 19, 2018
Jarus:


Slot the numbers here and get your answer

http://calculator.com.ng/firs-salary-income-tax-paye-calculator

Nice one
Re: Tax Professionals Forum by Ademolaononuga: 11:16pm On May 19, 2018
@Jarus: Thank you very much, Sir. This has been most helpful but to think that I am due to pay a tax of N95,305 naira is baffling me. I cannot reconcile it with reason. How can I pay such an amount just because I earned a bonus of N500,000 naira is my grouse. How I'd wish I was miscalculating. cry
Re: Tax Professionals Forum by funkyjms: 6:57am On May 20, 2018
Ademolaononuga:
@Jarus: Thank you very much, Sir. This has been most helpful but to think that I am due to pay a tax of N95,305 naira is baffling me. I cannot reconcile it with reason. How can I pay such an amount just because I earned a bonus of N500,000 naira is my grouse. How I'd wish I was miscalculating. cry

You mean this is what the online calculator calculated for you?
Re: Tax Professionals Forum by Jarus(m): 9:17am On May 20, 2018
Yyy
Re: Tax Professionals Forum by Nobody: 11:16am On May 20, 2018
..
Re: Tax Professionals Forum by Jarus(m): 12:37pm On May 20, 2018
oyb:


i tried to contact you, but it seems the number i have is the wrong one.

please delete this post IMMEDIATELY

you are not a private person, you are well known, and I GUARANTEE you that there are kidnappers and high tech scammers on this platform

you should know better sad angry

Done. Do yours too.

Thx
Re: Tax Professionals Forum by Kuljoe(m): 3:44pm On May 20, 2018
You can pick up the form from the local tax station close to you . Fill it , seal and sign the forms. Attach your form H1 and submit to the tax office . Its actually free . You can pm me if you need help .

profstar:
hello tax gurus,

pls how can i process/get etcc card in lagos

step by step way will be appreciated. thank you in advance
Re: Tax Professionals Forum by Ademolaononuga: 5:09pm On May 20, 2018
@funkyjms

Yes. But I think there's a miscalculation somewhere. I am trying to do the Mathematics manually using a template. I will share once done for scrutiny.
Re: Tax Professionals Forum by Ademolaononuga: 6:47pm On May 20, 2018
@Jarus @Funkyjms

I think I have got the calculation. Kindly view on your PC this Excel Worksheet. I am meant to pay about N18,600 and not the N95,000+ earlier posited and calculated by the tax calculator.

Kindly extend your views.

I appreciate you all.

Re: Tax Professionals Forum by Omolola92(f): 6:36pm On May 22, 2018
Hello House,

Please I need help with these Tax queries.

Firstly, I want to know how long a tax payer has to pay his tax liability. The basis of my confusion is that LIRS put 7 days on the notice of assessment but I am well aware that PITA provides for 2 months from the date of service of the notice of assessment.

Secondly, I also want to be sure if a tax payer can write the tax authorities for a breakdown of his Tax assessment( not objection but a breakdown) and the time frame within which he can. I was told 30 days( would like to confirm)

Also, I want to have an idea of how long it takes to facilitate a Tax Clearance Certificate from LIRS after paying Tax due. Thanks
Re: Tax Professionals Forum by Pabodan: 10:45am On May 23, 2018
Ademolaononuga:
@Jarus @Funkyjms

I think I have got the calculation. Kindly view on your PC this Excel Worksheet. I am meant to pay about N18,600 and not the N95,000+ earlier posited and calculated by the tax calculator.

Kindly extend your views.

I appreciate you all.

When I computed your tax based on the N1.08m annual gross pay (i.e 90,000 monthly), your tax was N52,112.18 per annum. However, when I computed based on N1.508m (i.e. your annual salary inclusive of the bonus) your tax increased to N111,425.70 per annum. The difference between these two computations is the tax associated to the bonus of N500,000, which is N59,313.52

Note that I gave you relief for pension, NHF and CRA.

Tax calculations are usually sensitive. To avoid confusion, it is always better you compute on the annual sums. If you intend to compute on the monthly sums, then you have to bear in mind the need for prorations. For instance the 200,000 will be divided by 12, also the tax bands (i.e. 300,000, 500,000 etc) will also be divided by 12. As such, it is always save to look at the computations from the annual point of view.

This is my take about your question.
Re: Tax Professionals Forum by Pabodan: 11:05am On May 23, 2018
Omolola92:
Hello House,

Please I need help with these Tax queries.

Firstly, I want to know how long a tax payer has to pay his tax liability. The basis of my confusion is that LIRS put 7 days on the notice of assessment but I am well aware that PITA provides for 2 months from the date of service of the notice of assessment.

Secondly, I also want to be sure if a tax payer can write the tax authorities for a breakdown of his Tax assessment( not objection but a breakdown) and the time frame within which he can. I was told 30 days( would like to confirm)

Also, I want to have an idea of how long it takes to facilitate a Tax Clearance Certificate from LIRS after paying Tax due. Thanks


. For normal monthly PAYE tax payments, payments are due on or before the 10th day of the month following the month of salary
. For assessment which is not subject to any objection, payment is to be made within 2 months
. For assessment determined after objection, payment is to be made within 1 month

This is the provision of the law. Yo

Yes you can ask, they normally ask you to come with a CD to obtain their computations. Also, since you can object within 30 days of receipt of assessment notice, it is save to say that you can also obtain the breakdown within 1 month

After submitting the application form, you should be able to obtain your tax card within 3 weeks. You may have to keep following up on them though.

2 Likes

Re: Tax Professionals Forum by Kuljoe(m): 11:13am On May 23, 2018
Secondly, You can write the tax authorities to provide a revised/final assessment which will carry a computation/breakdown . On this you are expected to defray your tax liability. You might need to liase with the tax officer in charge so that the liability is agreed upon. The breakdown might not be as detailed as you expect.

Thirdly, LIRS doesn't issue a tax clearance certificate as FIRS. What they issue is an E-TCC (Electronic tax clearance card ) . ETCC are issued to staffs and employers of company to signify payment of personal income taxes . Either the taxes were underpaid or overpaid, LIRS will issue the amount for each staff declared. I dont no what you expect to get tax clearance on , so might be difficult to help. If its a payment on demand notice you expect to get tax clearance on, there is none for it . What you get from LIRS is a receipt .

For now , E-TCC which LIRS provides is for personal income taxes on staffs and employers remitted .


Omolola92:
Hello House,

Please I need help with these Tax queries.

Firstly, I want to know how long a tax payer has to pay his tax liability. The basis of my confusion is that LIRS put 7 days on the notice of assessment but I am well aware that PITA provides for 2 months from the date of service of the notice of assessment.

Secondly, I also want to be sure if a tax payer can write the tax authorities for a breakdown of his Tax assessment( not objection but a breakdown) and the time frame within which he can. I was told 30 days( would like to confirm)

Also, I want to have an idea of how long it takes to facilitate a Tax Clearance Certificate from LIRS after paying Tax due. Thanks
Re: Tax Professionals Forum by Omolola92(f): 10:07am On Jun 21, 2018
Thanks a lot house... I am so happy a forum like this is up to guide tax professionals. I was able to settle the matter. When I went to the LIRS office, they claimed that I can't get a soft copy of the calculations. They claimed that that can only work if there was an audit and that they would send a breakdown of the BIK to my mail. After some days, they eventually did even though it was obvious that it was only a sharp calculation as it didn't even amount to what was in the assessment at first. Too bad, it was past 30 days and we couldn't object.

That aside, it will be nice if we can revive this thread. A lot of us are new in this profession and it will be nice to have a tax community as a support and I believe we can all learn from each other's experiences. Thanks once again
Re: Tax Professionals Forum by wisebrains: 11:27am On Jul 06, 2018
Please professional colleagues, I need a standardised capital allowances computation in Microsoft Excel format with the present FIRS allowable rates.

Kindly send to olalekan.edun@gmail.com or 08157377000 whatsapp.

Thanks in anticipation. God bless!
Re: Tax Professionals Forum by Melian(f): 11:36pm On Aug 26, 2018
Ademolaononuga:
@Jarus @Funkyjms

I think I have got the calculation. Kindly view on your PC this Excel Worksheet. I am meant to pay about N18,600 and not the N95,000+ earlier posited and calculated by the tax calculator.

Kindly extend your views.

I appreciate you all.

Will calculate your tax for you tomorrow morning. Bear in mind that your bonus N500000 for the month in question will be taken into consideration in arriving at your tax payable. That is, your gross income is N590,000.
Re: Tax Professionals Forum by dexter1983(m): 2:18pm On Sep 03, 2018
please i need urgent clarifications on the following:

1. As a director of a growing limited liability company,how best do i legally pay my Personal income tax,is it through PAYE or seperately? i tried paying through the payee with my staff but the state revenue told me i cant pay with the PAYE that it will be deducted seperately.

2. must a company deduct pension from salaries of staff and if yes,how do we remit this.

thank you
Re: Tax Professionals Forum by TimiRume: 9:06pm On Sep 06, 2018
Ademolaononuga:
@Jarus: Thank you very much, Sir. This has been most helpful but to think that I am due to pay a tax of N95,305 naira is baffling me. I cannot reconcile it with reason. How can I pay such an amount just because I earned a bonus of N500,000 naira is my grouse. How I'd wish I was miscalculating. cry
Hey hi you sent me a pm, do you need a designer? sorry for posting this here, i cant access my mail now.
Re: Tax Professionals Forum by llade(m): 6:56pm On Sep 07, 2018
Melian:
Very informative.
Re: Tax Professionals Forum by Melian(f): 7:35pm On Sep 07, 2018
dexter1983:
please i need urgent clarifications on the following:

1. As a director of a growing limited liability company,how best do i legally pay my Personal income tax,is it through PAYE or seperately? i tried paying through the payee with my staff but the state revenue told me i cant pay with the PAYE that it will be deducted seperately.

2. must a company deduct pension from salaries of staff and if yes,how do we remit this.

thank you

1. Your income tax will be calculated separately, yes.

2. (a) Pension is a relief allowance that reduces the tax payable on an employee's taxable income. As such, employees are advised to register/ open a pension account. Your company's accountant will liaise with a reputable PFA to start the process. Conclusion shouldn't take more than a week.
(b) there are two types of compulsory contributions. The first is "employer contribution" which is 10% of an employee's monthly gross income. The second is "employee contribution" which is 8% of an employee's monthly gross income. These two contributions will be remitted monthly into your employees' pension account.

Note: pension is calculated on gross income. Most make the mistake of deducting from basic salary which is wrong. That said, an employee's gross income for a month will include basic salary plus all bonuses and allowances earned in that month.

On whether pension deduction is compulsory or not, well, the law hasn't said it is but your company owes it to its employees.

1 Like

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