No Tax If You Are Earning Below ₦800k Annually - Politics - Nairaland
Nairaland Forum › Nairaland General › Politics › No Tax If You Are Earning Below ₦800k Annually (14360 Views)
| No Tax If You Are Earning Below ₦800k Annually by helinues(op): 5:14am On Jan 02 |
There have been so many misleading information about the new tax law. If you are earning below N800k, you won't be taxed and if your earnings fall above N1m which is the first tax rate formula, N800k from your N1m is tax free, the charges on the tax will be on the extra N200k https://www.youtube.com/watch?v=Lk9knTzLgaM?si=b-3_wsnMVYZPicqP Individuals Earning Below N800k Annually to be Tax-Exempt - Benson 9 Likes 3 Shares
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| Re: No Tax If You Are Earning Below ₦800k Annually by helinues(op): 5:17am On Jan 02 |
Funnily, the previous tax rate was just so high than the new one as your tax free used to be from the first N300k compared to the new N800k tax free 132 Likes 4 Shares |
| Re: No Tax If You Are Earning Below ₦800k Annually by kenchop: 5:26am On Jan 02 |
Yéyé dey smell for the country 32 Likes 1 Share |
| Re: No Tax If You Are Earning Below ₦800k Annually by helinues(op): 5:28am On Jan 02 |
kenchop:Your last paragraph,That's a very good question. Those who have been fuming about the new tax law, how many of them are earning above N800k 108 Likes 2 Shares |
| Re: No Tax If You Are Earning Below ₦800k Annually by Putinofrussia: 5:29am On Jan 02 |
Some key takeaways: For Individuals: Income Tax Exemption: Workers earning an annual income of ₦800,000 or less are fully exempt from personal income tax (PAYE). VAT Relief on Essentials: Essential goods and services such as food, medical services, pharmaceuticals, school fees, and electricity generation/transmission are zero-rated for VAT, reducing the cost of living for low-income households. Progressive Taxation: A more progressive personal income tax structure means high-income earners (above ₦50 million annually) are subject to a higher rate of 25%, ensuring a fairer contribution to the national revenue. Rent Relief: A new 20% rent deduction (capped at ₦500,000) is available to ease housing costs for employees. For Businesses: Small Business Exemption: Small businesses with an annual turnover of ₦50 million or less are exempt from Companies Income Tax (CIT), VAT, and withholding tax, fostering entrepreneurship and formalization. Corporate Tax Cut: For medium and large companies, the corporate tax rate will be reduced from 30% to 25% starting in 2026 to encourage investment and job creation. Elimination of Nuisance Taxes: Over 50 nuisance taxes and levies have been eliminated, and tax collection is unified under the new Nigeria Revenue Service (NRS) to reduce the administrative burden and red tape on businesses. Investment Incentives: Tax credits for VAT paid on capital expenditures and the introduction of Economic Development Tax Incentives (EDTI) for priority sectors (e.g., manufacturing, mining) are designed to attract investment and stimulate growth. System-wide and Governance Improvements Streamlined Administration: The creation of the Nigeria Revenue Service (NRS) replaces multiple agencies for a unified and efficient tax collection system. Transparency and Fairness: The establishment of an Office of the Tax Ombudsman and a Tax Appeal Tribunal aims to resolve taxpayer disputes quickly and fairly (within 14 days in some cases). Increased State Revenue: A revised VAT sharing formula gives states a larger share of the revenue (55% to states, 35% to local governments, 10% to Federal Government), encouraging fiscal autonomy and internal revenue generation. 101 Likes 6 Shares |
| Re: No Tax If You Are Earning Below ₦800k Annually by advanceDNA: 5:35am On Jan 02 |
helinues:Sir.... stop misrepresenting facts .... The 800k is per annum...which is just around 66k per month.... Minimum wage is 70k....even cleaner struggling to survive is not tax exempt.... Grandma tha the son sends 80k that's no longer enough in the economy is not even tax exempt After destroying the economy and purchasing power of the naira ...APC led govt should know that classifying tax exempt at 66k per month is a deceptive assessment to make sure no one is technically tax exempt.... 136 Likes 12 Shares |
| Re: No Tax If You Are Earning Below ₦800k Annually by helinues(op): 5:43am On Jan 02 |
advanceDNA:Per annum or over gagatum, are you going to be taxed for the first N800k? Wondering why some of you just like to rant instead of discussing Where did you even get all what you wrote above from? This thread was created to enlighten people like you who are being deliberately mischievous 85 Likes 2 Shares |
| Re: No Tax If You Are Earning Below ₦800k Annually by orisa37: 5:56am On Jan 02 |
advanceDNA:"YEYE DEY SMELL FOR NIGERIA". 5 Likes |
| Re: No Tax If You Are Earning Below ₦800k Annually by Guide777(m): 6:01am On Jan 02 |
advanceDNA: 2 Likes 2 Shares |
| Re: No Tax If You Are Earning Below ₦800k Annually by 1Alex: 6:09am On Jan 02 |
helinues:a whole you dey post this? 800k is per annum. Now divide 800k by 12 months and see that it is only for people who earn ₦67k and below, a month. 34 Likes 1 Share |
| Re: No Tax If You Are Earning Below ₦800k Annually by helinues(op): 6:19am On Jan 02 |
1Alex:Do we need to struggle to comprehend what you wrote above? Make it simpler for us Is the tax normally weekly/monthly before? 77 Likes |
| Re: No Tax If You Are Earning Below ₦800k Annually by DoTheNeedful: 6:20am On Jan 02 |
advanceDNA:You are just being overly critical. A minimum wage earner earns 840,000 in a year. Based on the new tax law, the 40,000 on top of the 800,000 is taxed at 15%, which means that a minimum wage earner pay 6,000 naira per year (500 per month) in tax. A minimum wage earner pays more than this in the old tax regime. Many of you that criticize do so either maliciously or due to ignorance. Our tax collection rate in Nigeria is one of the poorest even in Africa. The understanding of tax by Nigerians terrible. Many of you need to get it into your heads that tax payment is vital for any society to thrive. 44 Likes 3 Shares |
| Re: No Tax If You Are Earning Below ₦800k Annually by stokfrick: 6:24am On Jan 02 |
helinues:I see what you're trying to do. It's either your are misinformed or you are an APC stooge. Oga stop deceiving people, it is 800k per year which is 67k per month approximately. Anything above that government will slash your money 23 Likes 1 Share |
| Re: No Tax If You Are Earning Below ₦800k Annually by Mjshexy(f): 6:25am On Jan 02 |
I see this as an act of terrorism against Nigerians by this insensitive government who have destroyed the country beyond recognition and do not know how Nigerians have been struggling to survive, they now want to steal the little Nigerians are surviving with to furnish their stupendous lifestyles. I keep saying it, Nigerians are extremely tolerant, many nations would have risen against this extreme wickedness from these insensitive govt   31 Likes |
| Re: No Tax If You Are Earning Below ₦800k Annually by helinues(op): 6:26am On Jan 02 |
stokfrick:Would you be taxed if you are earning below N800k? And if you are earning above N800k, let's say N1m per annum, how much tax will you be taxed? See, we don't want you guys back and forth arguments on this thread, let's stick to facts 69 Likes 1 Share |
| Re: No Tax If You Are Earning Below ₦800k Annually by stokfrick: 6:28am On Jan 02 |
DoTheNeedful:Is that money, 70k even enough for a normal human being per month to live a life of even management, not to talk of taxing it. A lot of you here supporting this tax shitt have no conscience left 29 Likes 1 Share |
| Re: No Tax If You Are Earning Below ₦800k Annually by helinues(op): 6:29am On Jan 02 |
Mjshexy:This thread was created to enlighten people like you who have been misinformed. This current tax law is even lower than the previous rate. Before, you will only get tax free if you are earning below N300k and if you are earning above the tax % was higher than the new formula from above N800k The government really need to go fully on media awareness about this new tax law 71 Likes 1 Share |
| Re: No Tax If You Are Earning Below ₦800k Annually by helinues(op): 6:30am On Jan 02 |
DoTheNeedful:Bro, it's so annoying that they argue confidently on something they have little information above. Imagine how some of them have been sounding on this thread 40 Likes 1 Share |
| Re: No Tax If You Are Earning Below ₦800k Annually by Otuegbe: 6:31am On Jan 02 |
DoTheNeedful:from the above, even the poorest people will pay tax. 13 Likes |
| Re: No Tax If You Are Earning Below ₦800k Annually by helinues(op): 6:33am On Jan 02 |
stokfrick:Stick to the topic of discussion without derailing. This thread is not about how much is minimum wage . Imagine the way he wanted to shift from the narration when his initial narration have been quenched 38 Likes 2 Shares |
| Re: No Tax If You Are Earning Below ₦800k Annually by stokfrick: 6:35am On Jan 02 |
helinues:Oh I see, I didn't even look at your name before I started wasting my time responding to you. I am not surprised you're supporting this, its you helinues 17 Likes 2 Shares |
| Re: No Tax If You Are Earning Below ₦800k Annually by helinues(op): 6:36am On Jan 02 |
stokfrick:Oh okay. Let me assist you quickly. Thanks for stopping by temporarily 37 Likes |
| Re: No Tax If You Are Earning Below ₦800k Annually by DoTheNeedful: 6:41am On Jan 02*. Modified: 8:43am On Feb 27 |
stokfrick:Minimum wage is not meant to be enough for normal people in most places in the world. I live abroad, and in my first few years as a student, I was earning around a minimum wage. You know what? I paid taxes. I don't see any country that make minimum wage earners comfortable as a serious one. 11 Likes 2 Shares |
| Re: No Tax If You Are Earning Below ₦800k Annually by DoTheNeedful: 6:43am On Jan 02*. Modified: 8:28am On Jan 02 |
Otuegbe:Yeah, but very minimal. If you are being honest with yourself, can you tell me the minimum wage earners are not paying taxes under the previous tax law? Like I said, many of you opposed to the new law do so out of malice or ignorance. 14 Likes 1 Share |
| Re: No Tax If You Are Earning Below ₦800k Annually by bakusha(m): 6:48am On Jan 02 |
Ur explanation is unique, multiply d min wage by 12 months u will see that min wage earners are among the people that will be taxed. Sir.... stop misrepresenting facts .... The 800k is per annum...which is just around 66k per month.... Minimum wage is 70k....even cleaner struggling to survive is not tax exempt.... Grandma tha the son sends 80k that's no longer enough in the economy is not even tax exempt After destroying the economy and purchasing power of the naira ...APC led govt should know that classifying tax exempt at 66k per month is a deceptive assessment to make sure no one is technically tax exempt....[/quote] 7 Likes 1 Share |
| Re: No Tax If You Are Earning Below ₦800k Annually by TradingGod: 6:50am On Jan 02 |
Those exempted from paying tax will still pay it indirectly through buyingg and selling of goods and sdrvices because those people selling goods and services will increase their prices because of tye new tax rule The problem with poor people is that they don't think with their brains but they prefer other people to help them to think 23 Likes |
| Re: No Tax If You Are Earning Below ₦800k Annually by FarahAideed: 8:13am On Jan 02 |
Minimum wage is 70k so technically nobody is exempted from PIT 15 Likes |
| Re: No Tax If You Are Earning Below ₦800k Annually by FarahAideed: 8:14am On Jan 02 |
DoTheNeedful:Is that not still tax ? So why try to mislead people like the poor are exempted from tax 8 Likes |
| Re: No Tax If You Are Earning Below ₦800k Annually by DoTheNeedful: 8:27am On Jan 02 |
FarahAideed:How am I misleading anyone? We all know that people earning 800,000 and below will not pay tax. The calculation is for people earning 840,000. Under the previous tax law people like you are fighting to keep, people earning 400,000 per annum pay taxes. People earning 840,000 pay even far more than 6,000 they would pay in the new tax regime. The problem with some of you is that you are ignorant of both the old and new tax laws. You are opposing the new one out of malice, ignorance and/or partisanship. 10 Likes |
| Re: No Tax If You Are Earning Below ₦800k Annually by advanceDNA: 8:47am On Jan 02*. Modified: 1:31pm On Jan 03 |
DoTheNeedful:Sir ......The assessment is not fair..it I because u are not critical in the first place or u don't care that why u can't notice ....classifying tax exempt pple at 66k in this current economy is deceptive and outrightly wicked....When u pple want to compare abroad to Nigeria...u will cherry pick to favor your evil govt.... DoTheNeedful:ignorance...?? Look around you.....the cheapest rent in Nigeria is around 200k......1k can no longer buy a meal for a person, I have not touched bills, ..a 100k per month earner is dead not even poor and shouldn't be near tax with how the currency has been left badly depreciated... Be critical and compare UK tax exempt to Nigeria.... DoTheNeedful:again...mwhen u want to compare Nigeria to abroad u cherry pick....sir...do the pay u pple do these things? did u compare our embezzlement rate to other nations like the UK and co......?? Did u compare the natural resources we have and our elites spend alone to theirs....? u only want to compare what will put more money in the pocket of thieves .....sir..welldone Someone just told 212billiion naira ..thats just one person, yahaya bello is there..just one person....emefiele is there...that just one person caught......and a host of others that were not exposed because u all know it's a syndicate behavior in Nigeria to steal money DoTheNeedful:Sir....u are just speaking English slogan....saying tax is vital for society to thrive is statement is for countries who have sane leaders and established system that actually utilize the taxes and other revenue for their pple... Not pple who use tax payers money to pay terrorist, and enrich themselves... ..sir, I honestly don't get these justification of milking Nigerians when we know where the money will end up...... The fuel subsidy and currency gains have all ended in the pocket of the executives, law makers and judiciary.... There are 16 nations that don't pay taxes including Saudi thats an oil nation, so that slogan that tax is a must is a manipulative slogan to make pple surrender to exploitation . Sir, why don't y'all provide justification with the current set of revenues before coming here to quote slogan...... Hello sir......tax is not for society build up in Nigeria ...it's is for embezzlement because the current collection is heavily embezzled.. 23 Likes 2 Shares |
| Re: No Tax If You Are Earning Below ₦800k Annually by advanceDNA: 8:58am On Jan 02*. Modified: 1:53am On Jan 03 |
helinues:U came to analyze what u don't even know.. U were asking how many of the pple complaining earns 800k because u thought it was 800k per month Taxing 15% on the excess of 66k is overly robbing the poor....if u don't see that then u shouldn't be opening this thread helinues:u came here to support blindly as usual without knowledge of what u came to support.....yet pple that have an actual view are ranting... ?? Sir ..do they pay u people to leave u braln when u join APC?? helinues:Enlighten pple?? To enlighten pple also involve saying the truth ..... I only showed you the unfair assessment of poor pple exempted from tax based on current economic realities....something u never consider when bllndly following your oppressors...... Sir....If u want to enlighten pple, start with undiluted truth and fairness.... 13 Likes |
Nigerians Earning Below N250,000 Monthly Exempted From Tax — Oyedele • Tax Reform Bills: Nigerians Earning Below ₦1m Annually Exempted From Income Tax • No Tax Identification Number (TIN), No Bank Account - Finance Bill • 2 • 3 • 4
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