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Is 13th Month Salary Taxable by praxs(m): 1:35pm On May 20, 2018
Salute great nairalanders!

I work with a multinational organization. We are paid 13thmonth salary (bonus) at year end. However, tax is deducted and we end up getting net instead of gross. I tried to search online to see what the Nigerian tax law states as to taxation of 13month salary but couldn't find any.

To that, I brought it here for the experienced and learned heads to throw light on the subject. Please is it taxable? And where can I get where the Nigerian tax law talks about this so I can follow it up in my organization
Re: Is 13th Month Salary Taxable by NwaAmaikpe: 1:44pm On May 20, 2018
shocked


No it is not,
That is also why you shouldn't tithe on it.

19 Likes 4 Shares

Re: Is 13th Month Salary Taxable by tempex88(m): 2:30pm On May 20, 2018
It's taxable. All incomes are taxable home and abroad except those with specific exemptions like income from govt bonds etc

11 Likes

Re: Is 13th Month Salary Taxable by praxs(m): 5:25pm On May 20, 2018
tempex88:
It's taxable. All incomes are taxable home and abroad except those with specific exemptions like income from govt bonds etc

Can I have reference? I could be wrong but I thought bonuses are exempted from tax
Re: Is 13th Month Salary Taxable by praxs(m): 5:25pm On May 20, 2018
tempex88:
It's taxable. All incomes are taxable home and abroad except those with specific exemptions like income from govt bonds etc

I thought each country has its tax laws
Re: Is 13th Month Salary Taxable by tempex88(m): 5:27pm On May 20, 2018
praxs:


I thought each country has its tax laws

Yes. In Nigeria, all your earnings home and abroad are taxable if you are a Nigerian.

2 Likes

Re: Is 13th Month Salary Taxable by tempex88(m): 5:27pm On May 20, 2018
praxs:


Can I have reference? I could be wrong but I thought bonuses are exempted from tax
Google personal income tax act

2 Likes

Re: Is 13th Month Salary Taxable by Suko110(m): 8:01pm On May 20, 2018
Its a gift its suppose to be exempted from tax

5 Likes

Re: Is 13th Month Salary Taxable by Suko110(m): 8:06pm On May 20, 2018
tempex88:
It's taxable. All incomes are taxable home and abroad except those with specific exemptions like income from govt bonds etc
They ain't supposed to tax it.
Re: Is 13th Month Salary Taxable by uboma(m): 9:29pm On May 20, 2018
Suko110:
Its a gift its suppose to be exempted from tax



How is 13th month salary a gift?

7 Likes

Re: Is 13th Month Salary Taxable by Suko110(m): 9:57pm On May 20, 2018
uboma:




How is 13th month salary a gift?

Sorry man, its a bonus and its fully subjected to tax.
Thanks for the criticism....

15 Likes

Re: Is 13th Month Salary Taxable by Nobody: 1:19am On May 21, 2018
Suko110:


Sorry man, its a bonus and its fully subjected to tax.
Thanks for the criticism....
one fact most people fail to understand is that 13th month salary is not a bonus but rather be a normal salary being worked for as an employee.

Go to your calendar, you would see that month February is the only month with normal days outline.

A simple arithmetic shows that a month should have 4 weeks multiplied by 7 days to give you 28 days as normal.

Every other month has additional 2 to 3 days making it has 30 or 31 days within.

Now sum up these extra 2 to 3 days on the rest eleven months in a year, you definitely get 29 days as your answer, resulting to another month.

Hence you agree with me that 13th month salary is never a bonus to you but an accumulated extra 29 days in a calendar year which ought to be taxed like your regular salary.

71 Likes 3 Shares

Re: Is 13th Month Salary Taxable by uboma(m): 9:32am On May 21, 2018
Suko110:

Sorry man, its a bonus and its fully subjected to tax. Thanks for the criticism....


Another error.

13th month salary is not a bonus.
Re: Is 13th Month Salary Taxable by Suko110(m): 2:43pm On May 21, 2018
FatokiFemi48:



one fact most people fail to understand is that 13th month salary is not a bonus but rather be a normal salary being worked for as an employee.

Go to your calendar, you would see that month February is the only month with normal days outline.

A simple arithmetic shows that a month should have 4 weeks multiplied by 7 days to give you 28 days as normal.

Every other month has additional 2 to 3 days making it has 30 or 31 days within.

Now sum up these extra 2 to 3 days on the rest eleven months in a year, you definitely get 29 days as your answer, resulting to another month.

Hence you agree with me that 13th month salary is never a bonus to you but an accumulated extra 29 days in a calendar year which ought to be taxed like your regular salary.



Nice point, but let me ask you
Do you get payed weekly?
If no, your employer could choose to not pay you the so called 13th month and nothing will happen. Its simply a bonus or do we have a 13month calendar year. When it comes to remuneration, its what it is, not logic. Peace

16 Likes 1 Share

Re: Is 13th Month Salary Taxable by Nobody: 9:03pm On May 21, 2018
Suko110:

Nice point, but let me ask you
Do you get payed weekly?
If no, your employer could choose to not pay you the so called 13th month and nothing will happen. Its simply a bonus or do we have a 13month calendar year. When it comes to remuneration, its what it is, not logic. Peace

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.

3 Likes

Re: Is 13th Month Salary Taxable by kaffyadeakeem(f): 9:53pm On May 21, 2018
Yes
Re: Is 13th Month Salary Taxable by Authoreety: 6:52am On May 22, 2018
Bbbh
Re: Is 13th Month Salary Taxable by MANNABBQGRILLS: 6:52am On May 22, 2018
No, not at all!!
Re: Is 13th Month Salary Taxable by SamuelAnyawu(m): 6:53am On May 22, 2018
grin Among NGOs here it is a gift.. just an end of year bonus grin this is why i love NGOs like PLAN, IRC,FHI

1 Like

Re: Is 13th Month Salary Taxable by Atk1nson(m): 6:54am On May 22, 2018
praxs:
Salute great nairalanders!

I work with a multinational organization. We are paid 13thmonth salary (bonus) at year end. However, tax is deducted and we end up getting net instead of gross. I tried to search online to see what the Nigerian tax law states as to taxation of 13month salary but couldn't find any.

To that, I brought it here for the experienced and learned heads to throw light on the subject. Please is it taxable? And where can I get where the Nigerian tax law talks about this so I can follow it up in my organization

It is not just taxable, it is taxable at a higher effective tax rate.

Whatever emolument you get from you employer (discretionary or contractual) from which you are intended to benefit is taxable
Re: Is 13th Month Salary Taxable by Unlimited22: 6:55am On May 22, 2018
Suko110:
Its a gift its suppose to be exempted from tax
I don't understand. How is it a gift?
Re: Is 13th Month Salary Taxable by datola: 6:56am On May 22, 2018
praxs:
Salute great nairalanders!

I work with a multinational organization. We are paid 13thmonth salary (bonus) at year end. However, tax is deducted and we end up getting net instead of gross. I tried to search online to see what the Nigerian tax law states as to taxation of 13month salary but couldn't find any.

To that, I brought it here for the experienced and learned heads to throw light on the subject. Please is it taxable? And where can I get where the Nigerian tax law talks about this so I can follow it up in my organization

You want to take it up with your employer for being magnanimous giving you bonus that is not compulsory?

Don't be like the proverbial man one who has eaten to bellefull and still looking for how to cut his stomach up ( eni to jeun yo tan t'o n wa bekun bekun kiri).

3 Likes 2 Shares

Re: Is 13th Month Salary Taxable by bigplayerz(m): 7:00am On May 22, 2018
NO ...Ìts not taxable
Re: Is 13th Month Salary Taxable by joeyswift(m): 7:05am On May 22, 2018
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
Re: Is 13th Month Salary Taxable by Adesina12: 7:06am On May 22, 2018
Check section 3 of Personal Income Tax Law as amended in 2011 for the definition of income chargeable.
13th month is 100% taxable
Good luck.

2 Likes

Re: Is 13th Month Salary Taxable by Melian(f): 7:09am On May 22, 2018
It rightly is.

1 Like

Re: Is 13th Month Salary Taxable by Adekdammy: 7:09am On May 22, 2018
13th month salary is taxable because it's an income you earn.
Re: Is 13th Month Salary Taxable by mavinc4u(f): 7:11am On May 22, 2018
If we don't have 13th month in a year, why should it be taxed or what name exactly would government call that? This is stealing from the government side. Anyway what do I know?

2 Likes

Re: Is 13th Month Salary Taxable by dnawah(m): 7:12am On May 22, 2018
bigplayerz:
NO ...Ìts not taxable
prove and leave your answers to d nearest references.thanks in advance.
Re: Is 13th Month Salary Taxable by ifycool(m): 7:18am On May 22, 2018
[quote author=FatokiFemi48 post=67735702]


one fact most people fail to understand is that 13th month salary is not a bonus but rather be a normal salary being worked for as an employee.

Go to your calendar, you would see that month February is the only month with normal days outline.

A simple arithmetic shows that a month should have 4 weeks multiplied by 7 days to give you 28 days as normal.

Every other month has additional 2 to 3 days making it has 30 or 31 days within.

Now sum up these extra 2 to 3 days on the rest eleven months in a year, you definitely get 29 days as your answer, resulting to another month.

Hence you agree with me that 13th month salary is never a bonus to you but an accumulated extra 29 days in a calendar year which ought to be taxed like your regular salary.


You are very correct my guy. This is the premise behind the 13th month pay check. I equally work with a multinational company and this is tax deductible.

1 Like

Re: Is 13th Month Salary Taxable by bharkarh(m): 7:18am On May 22, 2018
FatokiFemi48:



one fact most people fail to understand is that 13th month salary is not a bonus but rather be a normal salary being worked for as an employee.

Go to your calendar, you would see that month February is the only month with normal days outline.

A simple arithmetic shows that a month should have 4 weeks multiplied by 7 days to give you 28 days as normal.

Every other month has additional 2 to 3 days making it has 30 or 31 days within.

Now sum up these extra 2 to 3 days on the rest eleven months in a year, you definitely get 29 days as your answer, resulting to another month.

Hence you agree with me that 13th month salary is never a bonus to you but an accumulated extra 29 days in a calendar year which ought to be taxed like your regular salary.



I agree with your point, however, 13 month salary is not subjected to be taxed as the extra 2-3 days in each months of the year has already been taxed. I work with a private organization and my 13 month salary has never been taxed.

3 Likes

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