₦airaland Forum

In our previous article on Calculating Pay-As-You-Earn (PAYE), we discussed what PAYE is, how you can arrive at your taxable pay and tax payable. However, Employees have tax reliefs and exemptions; and this article will discuss those Reliefs in its simple terms.

Tax reliefs and exemptions according to Personal Income Tax (Amendments) Act, 2011 explained that Tax exempt are deducted from Gross Income before the income is subjected to tax. The following are parts of these exemptions:

1. National Housing Fund (NHF)
2. National Health Insurance Scheme Contribution
3. National Assurance Premium
4. National Pension Scheme.
5. Gratuities.

NATIONAL HOUSING FUND (NHF)

The National Housing Fund manage by the Federal Mortgage Bank of Nigeria (FMBN) under the National Housing Fund Act 1992, stated that any Nigerian earning an income of Three Thousand Naira (#3,000) and above per annum; both the public and private sector of the economy is required to contribute 2.5% of his monthly Basic Salary to the fund. The employer of such employee is to deduct the contribution from the employee’s monthly salary and remit to the Federal Mortgage Bank of Nigeria within one month of making the deduction. Also, Click here http:///2n46IGL

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