Understandably, majority of income earned from “side hustles” in Nigeria escape taxation.

Recently the government announced its intention to enforce the Personal Income Act which makes it mandatory for all earned income to be taxed.

This article breaks down the taxation to be expected on alternative income sources and how it will be calculated

The Nigerian government currently boasts a paltry tax-to-GDP ratio of 10% – one of the lowest in the world. A tax-to-GDP ratio is the total amount of taxes collected per total value of goods produced in the country. A pertinent reason for this is the low rate of tax collection in the informal market, which is largely made up of sole entrepreneurs, freelancers and those with alternative sources of income.


READ MORE: https://nairametrics.com/how-much-tax-you-could-pay-for-any-side-hustle-that-earns-between-n50k-and-n500k-monthly/


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