The types of income tax that are imposed on the Nigerians are of many kinds depending upon the structure to which a person is related. It is very important to note that the types of income tax are very important for the tax payers as it is class segregation according to which the tax is paid. Knowing the tax class is also extremely important as it makes sure that the related rules and regulations are also studied and applied so that the tax deductions are enjoyed. When it comes to burgeoning economy like that of Nigeria the types of income tax hold vital importance in this regard and the government ensures that the general public gets to know these types and always file the tax according to the class they belong. The types of the income tax that are imposed on the Nigerians are regulated and formulated by different laws in this regard and some of them are explained in detail as follows:

1. Personal income tax
The people who are working within the Nigerian economy should make sure that they file the personal income tax within the timelines that are devised by the government. It is for the same reason that the personal income tax has been further segregated by the government to make sure that the people come to know the types of income tax that are implemented by the law that governs personal income tax. Following are some of the brief entities that are covered by the personal income tax idea:
a. If a person is a Nigerian then the personal income tax law is only applicable if the earnings are being earned within the Nigeria.
b. If the individual has some business that is run using the Nigerian economy.
c. All expats are also liable to pay the income tax as they are making the livelihood within the Nigerian economy.
The government keeps a close eye on all the individuals of the country and they are taxed according to the categories that have been mentioned above.

2. Companies income tax
The types of income tax include companies’ income tax law as a second category. The companies in Nigeria are taxed according to their structure as well as type. There are several international companies working in Nigeria and they are taxed according to their profits that are being made within the country. There is a phenomenon of Education tax that binds the companies to pay 2% of the total tax for the benefit of the education in the country.

3. Petroleum profit tax
It is one of the most important tax laws that are applicable in the country and show that the Nigerian government is very keen in providing benefits to the companies that are involved in gas and petroleum businesses. It is very important to note that the tax applicable under the PPTA is exempted under the companies income tax and vice versa.

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