₦airaland Forum

Correct me if am wrong ......Spent over 2 hours trying to understand this new tax law and all i can say is omo January might be very hot with the 1st set of people earning over 800k being taxed
| **Income Range (₦ / year)** | **Tax Rate Applied** |
| --------------------------- | -------------------- |
| ₦0 – ₦800,000 | **0% (No tax)** |
| ₦800,001 – ₦1,300,000 | **15%** |
| ₦1,300,001 – ₦1,800,000 | **20%** |
| ₦1,800,001 and above | **25% (maximum)** |

So if you earn 100k monthly with expenses of 20k per month for rent bills and the rest ,at the end of the year your take home is 960k ,government won't charge 800k cause its exempted you'll be charged 15% from your remaining 160k which means you'll pay 24k yearly as tax as your income increases your tax increases...alot of people dont know about this reform so what will happen in January February when deductions are made so much explanation to do and the government aren't even trying ..... I just pity bankers working in the north

What does expenses mean? Personal expenses? Then no. If 100k is your net from payroll, then 300k (100k x12 - 800k) is what is subjected to 15%

Yourprick:
Correct me if am wrong ......Spent over 2 hours trying to understand this new tax law and all i can say is omo January might be very hot with the 1st set of people earning over 800k being taxed
| **Income Range (₦ / year)** | **Tax Rate Applied** |
| --------------------------- | -------------------- |
| ₦0 – ₦800,000 | **0% (No tax)** |
| ₦800,001 – ₦1,300,000 | **15%** |
| ₦1,300,001 – ₦1,800,000 | **20%** |
| ₦1,800,001 and above | **25% (maximum)** |

So if you earn 100k monthly with expenses of 20k per month for rent bills and the rest ,at the end of the year your take home is 960k ,government won't charge 800k cause its exempted you'll be charged 15% from your remaining 160k which means you'll pay 24k yearly as tax as your income increases your tax increases...alot of people dont know about this reform so what will happen in January February when deductions are made so much explanation to do and the government aren't even trying ..... I just pity bankers working in the north

thegeniusoye:
What does expenses mean? Personal expenses? Then no. If 100k is your net from payroll, then 300k (100k x12 - 800k) is what is subjected to 15%

are personal expenses like light rent water bills not expenses where's the 300k coming from? I thought the you'll be taxed after bills and rest rest has been cleared

Sorry I mean 400k. The only bill you can claim relief for, is rent, up to a max of 500k (or 20% of your yearly rent