Personal Income Tax (Amendment) Act, 2011

more+
less-

The Personal Income Tax (Amendment) Act 2011 ("PIT 2011") has amended the Personal Income Tax Act, 2004 by consolidating all the personal income tax reliefs or allowances into one Consolidated Tax Allowance/Relief ("CTAR") of 21% of an individual's gross annual income. The residue of a person's gross income is then liable to a graduating personal income tax rate of between 7% to 24%.

Another new tax provision in this legislation is the requirement that expatriate income is now liable to personal income tax charge in Nigeria where the employer of the expatriate is based in Nigeria, or has a fixed base for doing business in Nigeria or where the employee resides and works in Nigeria for a cumulative period of 183 days in one calendar month. This new provision is however subject to any double taxation prevention treaty ("DTT") that the Nigerian National Assembly has ratified as a DTT with another country.

Criticism of this new Law include its emphasis on direct taxation in stead of indirect taxation; higher taxes on the low and high economy earners to the benefit of the middle class; controversy over its commencement date; etc.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Oserogho & Associates | Attorney Advertising

Written by:

more+
less-

Oserogho & Associates on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×