Frequently AskedQuestions

Personal Income Tax (PIT) is a tax levied on the income of individuals in Nigeria. It's administered by the Federal Inland Revenue Service (FIRS) and State Internal Revenue Services. The tax applies to employment income, business profits, dividends, interest, and other sources of income.

Nigerian PIT uses a progressive tax system with different bands. The first ₦300,000 is taxed at 7%, the next ₦300,000 at 11%, the next ₦500,000 at 15%, the next ₦500,000 at 19%, the next ₦1,600,000 at 21%, and anything above ₦3,200,000 is taxed at 24%. These rates apply to chargeable income after allowable deductions and reliefs.

PAYE (Pay-As-You-Earn) is a system where employers deduct tax from employees' salaries before payment. The employer calculates the tax based on the employee's gross income, applies allowable deductions and reliefs, and remits the tax to the relevant tax authority monthly. This ensures tax is collected throughout the year rather than in a lump sum.

Allowable deductions include pension contributions (up to certain limits), National Housing Fund (NHF) contributions, National Health Insurance Scheme (NHIS) contributions, and life assurance premiums. Personal reliefs include consolidated relief allowance (CRA) and other statutory reliefs. These reduce your chargeable income and ultimately your tax liability.

Yes, even if you're on PAYE, you may still need to file an annual tax return, especially if you have additional sources of income beyond your employment, or if your total income exceeds certain thresholds. It's best to consult with a tax professional or check with your State Internal Revenue Service for specific requirements.

TaxBook integrates with Remita to generate Remita Retrieval Reference (RRR) numbers. Once you calculate your tax using our calculator, you can generate an RRR, which you can use to pay through any Remita-enabled channel including banks, online banking, or Remita's website. After payment, the status is automatically updated in your TaxBook history.

Self-employed individuals and freelancers are required to register with their State Internal Revenue Service, keep proper records of income and expenses, and file annual tax returns. You'll need to calculate your taxable income (gross income minus allowable business expenses) and pay tax based on the same progressive bands. TaxBook can help you calculate your tax liability accurately.

Yes, TaxBook is designed with security in mind. We use encryption for data transmission, secure authentication, and follow best practices for data protection. Your tax calculations and payment history are stored securely and are only accessible to you. We never share your information with third parties without your consent.