₦airaland Forum

Please someone should explain this new tax law to me using the example below because I don't really understand it.


A crypto p2p trader

Beginning of the month:
Current balance: 1m

At Month end:
Current balance now 1.3m

Outflow or debit for the month: 23m

Inflow or credit for the month: 24.3m

How will the tax be calculated? I need clarification on the above example so as to prepare ahead by going full crypto if necessary.

suckprick:
Please someone should explain this new tax law to me using the example below because I don't really understand it.


A crypto p2p trader

Beginning of the month:
Current balance: 1m

At Month end:
Current balance now 1.3m

Outflow or debit for the month: 23m

Inflow or credit for the month: 24.3m

How will the tax be calculated? I need clarification on the above example so as to prepare ahead by going full crypto if necessary.

Let's assume you are using your personal account (not a registered company), and you make 300k monthly as profit from your explanation above.

In a year, your total profit will be 3.6 million. From the new tax law, any amount below 3m will be taxed at 15%, while any amount above it will be taxed at 18%; 800k will be untaxed. Your total tax for the year will be 438k. Which means you'll pay 36,500 monthly as tax.

Your net income after tax will be 263500.

However, note that the tax will be charged on total household income.

For example, if you are married and your partner makes 2 million naira annually, your tax will be calculated from the total (5.6 million).

onlyhope:
Let's assume you are using your personal account (not a registered company), and you make 300k monthly as profit from your explanation above.

In a year, your total profit will be 3.6 million. From the new tax law, 3m will be taxed at 15%, while any amount above it will be taxed at 18%. Your total tax for the year will be 558k. Which means you'll pay 46,500 monthly as tax.

Your net income after tax will be 253500.

Okay thanks for the explanation. This govt wan finish us.

suckprick:
Okay thanks for the explanation. This govt wan finish us.

Just updated it above.