No Tax If You Are Earning Below ₦800k Annually - Politics (6)

No Tax If You Are Earning Below ₦800k Annually - Politics (6) - Nairaland

Nairaland Forum › Nairaland General › Politics › No Tax If You Are Earning Below ₦800k Annually (14399 Views)

Re: No Tax If You Are Earning Below ₦800k Annually by advanceDNA: 1:06pm On Jan 02

JobAndVacancies:
private school teachers are earning way below minimum wage.
They are exempted

Make no mistake...Nobody is surviving on less than 100k in this current nation,....if u think private school teachers paid 30k per month survive on 30k then u are among those that don't get the economic realities of the poor..

...teachers u are talking about get handouts from family and friends to survive...and these addition is what will now be taxed....

2 Likes

Re: No Tax If You Are Earning Below ₦800k Annually by advanceDNA: 1:11pm On Jan 02

Cmanforall:
That 15% is too much for the first level

Thats exactly what I was trying to say....

Or they categorize tax exempt pple at 200k per month to capture the current economic realities of the poor man..because gone are the days when 200naira can feed one person oer meal....1k can't even buy you a good meal...

It's wickedness to claim you want to tax someone earning 100k when such a person can't even survive with the whole 100k under this economy they destroyed...

1 Like

Re: No Tax If You Are Earning Below ₦800k Annually by Offpoint1: 1:18pm On Jan 02

Petah:
To be honest, I am more educated about the tax laws from what I have read on this thread. I make around 41k in a month. Now I do some side hustle, that makes it close to 75k a month. Now how will I be charged to pay tax? Is it on the side hustle or just salary. Your kind explanation will be helpful.
@everyone.

Where dey money comes from doesn't matter, once whatever enters your account is above that, you're going to pay tax....

Re: No Tax If You Are Earning Below ₦800k Annually by ojobek: 1:19pm On Jan 02

This government is not sincere, according to IMF and World bank yard stick,$3per day(less #1. 3m per yr)is extremely poor,1.3-3million is poor,3m-10m is out of poverty then 10m above is rich.So where do they see #800th they use as a standard.There aim is to make you over extremely poor, Tinubu is wicked.

Re: No Tax If You Are Earning Below ₦800k Annually by VeeVeeMyLuv(f): 1:21pm On Jan 02

What about companies

Re: No Tax If You Are Earning Below ₦800k Annually by Chucks13: 1:22pm On Jan 02

advanceDNA:
Looters are not misinforming anyone....looters want you to pay say they can loot more.,

They all have NGO accounts and other accounts exempted from taxes so under the old or new tax law...these looter dont pay very little to zero taxes anyway....

What I will say is since this is going to cause uproar then it should scrap indefinitely so everybody can rest.

Re: No Tax If You Are Earning Below ₦800k Annually by advanceDNA: 1:31pm On Jan 02

Chucks13:
What I will say is since this is going to cause uproar then it should scrap indefinitely so everybody can rest.

It doesn't have to be scraped....it should just focus more high earners and companies... And they would initiate other double taxation ...but they don't care....they just want more money

The truth is there isn't really many companies in Nigeria to collect money from that would amount to huge revenue.....so the real target is 250million everyday individual Nigerians ..
.....
.ask them how much is generated from stamp duty...and how it's is spent....all na voice mail

Now they've started charging those sending money too...the 50naira don sweet to collect

Re: No Tax If You Are Earning Below ₦800k Annually by Konjiboii: 1:36pm On Jan 02

Day just Dey break when day don ripe well una go enter road protest. House rents are astronomical and basic amenities are now luxury, omo we are on a long thing. APC are bent on eliminating every one, this might just be the depopulation agenda all along.

Re: No Tax If You Are Earning Below ₦800k Annually by LanreTjakes: 1:39pm On Jan 02

If you are earning 800k and below PER ANNUM, then you are exempted from the tax.

helinues:
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

Re: No Tax If You Are Earning Below ₦800k Annually by maasoap(m): 1:46pm On Jan 02

helinues:
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

Annually?
How much will I do you think sustain a single person per month in Nigeria is of today?

Re: No Tax If You Are Earning Below ₦800k Annually by VeeVeeMyLuv(f): 1:52pm On Jan 02

advanceDNA:
Thats exactly what I was trying to say....

Or they categorize tax exempt pple at 200k per month to capture the current economic realities of the poor man..because gone are the days when 200naira can feed one person oer meal....1k can't even buy you a good meal...

It's wickedness to claim you want to tax someone earning 100k when such a person can't even survive with the whole 100k under this economy they destroyed...

That is pure wickedness
No conscience at all

You see this particular tax that this man is bringing bah? It absolutely uncalled for, unnecessary , very insensitive.

Because we are already paying big big tax through
Subsidy removal on fuel 170 to 1000 naira
Electricity 4units for 1000 naira only

And removal of subsidy for school fees

Re: No Tax If You Are Earning Below ₦800k Annually by Lokostar01: 1:53pm On Jan 02

advanceDNA:
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 You are not smart, what it means is that if you earn above 800k annually they will first remove 800k without tax and the remaining balance that will be tax. So it is better than the old tax law

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....

Re: No Tax If You Are Earning Below ₦800k Annually by Lokostar01: 1:54pm On Jan 02

advanceDNA:
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 You are not smart, what it means is that if you earn above 800k annually they will first remove 800k without tax and the remaining balance that will be tax. So it is better than the old tax law

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....

You are not smart, what it means is that if you earn above 800k annually they will first remove 800k without tax and the remaining balance that will be tax. So it is better than the old tax law

Re: No Tax If You Are Earning Below ₦800k Annually by advanceDNA: 2:04pm On Jan 02

Lokostar01:
You are not smart, what it means is that if you earn above 800k annually they will first remove 800k without tax and the remaining balance that will be tax. So it is better than the old tax law

U don't get the point u are just rushing to spew the same line they are using to brain wash you ....
U are smart .but it doesn't occur to you that there is no one surviving on 66k anymore in this country......why do u think it's now justified to rob the poor of the little they have ..??

Tax exempt should start from 2.4M per per annum and below

Re: No Tax If You Are Earning Below ₦800k Annually by ibechris(m): 2:06pm On Jan 02

helinues:
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

U don't know anything yet, u keep arguing.

Now that u have carried that ur bad character to this new year...deliverance is what u need now.

Re: No Tax If You Are Earning Below ₦800k Annually by ChybuzzDD(m): 2:06pm On Jan 02

helinues:
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

I hope you know it's per annum, not monthly??

Re: No Tax If You Are Earning Below ₦800k Annually by jasent(m): 2:07pm On Jan 02

Putinofrussia:
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.

if you earn 67k monthly,you'll be tax. But you guys said the tax is not for the poor. Or 67k monthly earner is not poor?

1 Like

Re: No Tax If You Are Earning Below ₦800k Annually by jaxxy(m): 2:16pm On Jan 02

DoTheNeedful:
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.

A minimum wage earner wasn't paying any tax in the old regime. undecided

Show us how much tax the minimum wage earner paid in the old regime.

Re: No Tax If You Are Earning Below ₦800k Annually by Didijiji: 2:19pm On Jan 02

You removed subsidy and took more money from us in the form of buying fuel, pay for fare, pay for inflation

Now you want to even steal more money from us in the form of tax

The money your saved from subsidy where is it? You have borrowed more than the past 2 administrations even with the savings from subsidy

What have you achieved Tinubu? Power, security, infrastructure, economy huh

?? How are you better than Buhari with all these thieving policies

Re: No Tax If You Are Earning Below ₦800k Annually by ceejayluv(m): 2:30pm On Jan 02

helinues:
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

The previous tax law had other tax relief including 200k housing plus 20 percent of gross Income tax exempted.
For middle income earners, the New tax law makes little or no difference. It's beneficial to low income earners but a nightmare for multimillion salary earners.

Re: No Tax If You Are Earning Below ₦800k Annually by luckingto50: 2:35pm On Jan 02

DoTheNeedful:
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.

Collecting from the poor to feed the politicians. The same way transmission company in collaboration with Nigeria government to increase tariff and promise to improve electricity. Where is the light today? I earn 100k a month, transportation alone cost 69k for 23 working days, feeding and other things not included. Get it into your head too, that paying the tax is not the issue, will they utilize the tax to better ordinary Nigerians?

Re: No Tax If You Are Earning Below ₦800k Annually by tpain121: 2:45pm On Jan 02

Chucks13:
They have be told severaly but they refused to listen so no need telling them again.

Those looters are the main people misinforming the public so they won't pay anything from their loots.

Few days ago we heard bank will be charging N50 levy on transactions above 10k they came here and started making noise but I asked them is "Obi bank not going to take that N50 from their customers and did your saint obi came out and say no my own bank won't charge anyone N50"? Hell no, he acted as if he can not read or understand English again. Una go learn by hard way.

Did you just smoke before making this post?

Just spewing jargons.

You sef see wetin you post nau. E make sense to you?

Re: No Tax If You Are Earning Below ₦800k Annually by Grand194: 3:05pm On Jan 02

helinues:
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

But what about rent, I thought rent is deductible, you remove rent, pension, the first 800K and then you calculate your tax?

Re: No Tax If You Are Earning Below ₦800k Annually by watchindelta(m): 3:12pm On Jan 02

What of we who not leaving in nigeria but puting money in our account in Nigerian. So we go pay tax? Because im not working in nigeria oh!

Re: No Tax If You Are Earning Below ₦800k Annually by Putinofrussia: 3:22pm On Jan 02

ibsadiq:
Just to confirm my understanding: with the federal minimum wage now at ₦70,000 monthly (₦840,000 annually), doesn’t this effectively mean that almost every formally employed individual becomes taxable, since the PAYE exemption only applies to incomes of ₦800,000 or less?
I understand the tax may be minimal at that level due to progressive bands and reliefs, but in principle, minimum-wage earners would no longer fall under the full exemption. Happy to be corrected if I’m missing something.

God bless you for that honest question,sir.
They will generally be exempt from tax.
The law explicitly exempts individuals earning ₦800,000 or less per annum from paying personal income tax.

Allowable Deductions:
For an individual earning exactly ₦840,000 per year, their gross income is slightly above the ₦800,000 exemption threshold. However, mandatory and other allowable deductions can be made to lower their taxable income.
Allowable deductions include:
Pension contributions (8% of salary)
National Housing Fund (NHF) contribution (2.5% of gross pay)
National Health Insurance Scheme (NHIS) contribution (5% of basic salary)
Approved life insurance premiums
A rent relief (20% of annual rent, capped at ₦500,000).

Practical Application:
When these deductions are applied, the actual taxable income for a minimum wage earner often falls below the ₦800,000 threshold, resulting in zero income tax liability. For example, after typical deductions, an individual earning ₦70,000 monthly might have a taxable income around ₦710,800 annually, which is exempt.
In essence, the policy aims to protect low-income earners from the tax burden, in line with President Tinubu's administration goals to ensure that the poor are not taxed.

Re: No Tax If You Are Earning Below ₦800k Annually by watchindelta(m): 3:30pm On Jan 02

Normally they suppose minus ur expenses from your salary. That how they do here in italy, to help the low income. 800k minus ur expenses or 1.5 mil minus ur expenses. When you minus from it maybe you will fall among the low income. To get benefits from the government. But nigeria government only copying only wety they favour them from Europe or America. But leave the good one wey go favour citizens Yeye people 🙄

Re: No Tax If You Are Earning Below ₦800k Annually by VeeVeeMyLuv(f): 3:54pm On Jan 02

But Nigeria workers both in private and public federal government civil service were already paying tax known as PAYE

Their EMPLOYERS HAVE BEEN EXTRACTING THE INCOME TAX AT SOURCE all the while prior to this pronouncement

Are you saying that money that enters the government or the private sector hands after all the deductions including mortgage, pension, insurance and income tax is what you are now after?

If that's the case, then this is double jeopardy!
Double taxation!

Are they still going to tax your monthly salary alert after deductions such as the PAYE TAX (Also income tax) at the end of the year using the new tax policy?

That would be double taxation

Re: No Tax If You Are Earning Below ₦800k Annually by kaltonga: 4:23pm On Jan 02

helinues:
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

Please educate me, is this still applicable to the states? I mean the various states internal revenue services , will they also Levy their taxes online with this federal template or do they have a different ones?

Re: No Tax If You Are Earning Below ₦800k Annually by Testimony1988(m): 4:34pm On Jan 02

So it means my own tax will be on N2,200,000 since N800,000 is free, but I don't understand the percentage being used here.

Re: No Tax If You Are Earning Below ₦800k Annually by bizzibodi(m): 4:41pm On Jan 02

Lying is their occupation someone earnings #67k below minimum wage fall into the wicked tax dragnet.

Re: No Tax If You Are Earning Below ₦800k Annually by mechanics(m): 4:59pm On Jan 02

Sapiosexuality:
That should be 15 percent of 2.2 million or 330,000 per year.

IHmmmmm, this is serious, that means it will be higher than the previous tax.

Re: No Tax If You Are Earning Below ₦800k Annually by Businext: 5:02pm On Jan 02

try divide N800,000 by 12 months, that figure get as e be

#NotAllThatMeetsTheEyes

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