Optimization • Tax Tips

Tax Optimization Tips

Personalized recommendations to legally reduce your tax burden.

Your Income Profile

Annual Gross Income

₦

Current Pension Contribution

₦

NHF Contribution

₦

Potential Annual Tax Savings

₦118,500.00

Priority Actions (1)

Maximize Pension Contributions

High Impact

You're only using 0% of your pension allowance. Contributing an additional ₦300,000.00 could reduce your taxable income.

Up to ₦72,000.00 in tax savings

All Recommendations (6)

Consider NHF Contributions

National Housing Fund contributions are tax-deductible and help you save for homeownership. The maximum is 2.5% of basic salary.

Up to ₦22,500.00 annually

Get Life Insurance Coverage

Life insurance premiums are tax-deductible in Nigeria. Besides the tax benefit, it provides financial security for your family.

Enroll in Health Insurance

NHIS contributions (up to 5% of basic salary) are tax-deductible and provide healthcare coverage.

Up to ₦45,000.00 annually

Review Tax Position Before Year-End

Before December ends, review your tax situation. You may be able to accelerate deductible expenses or defer income.

Keep All Receipts & Records

Document all tax-deductible expenses throughout the year. Good records support your claims during assessment.

File Returns Early

Filing early (well before March 31st deadline) gives you time to correct errors and claim refunds faster.

Nigerian Tax Reliefs at a Glance

CRA (Automatic)

₦200,000 or 1% of income (higher) + 20% of gross income

Pension

Up to 8% of basic salary (employee contribution)

NHF

2.5% of basic salary for housing fund

NHIS

Up to 5% of basic salary for health insurance

Life Insurance

Premiums paid are tax-deductible

Gratuity (on retirement)

Tax-exempt up to certain limits

Disclaimer: These tips are for educational purposes only. Tax situations vary, and you should consult a qualified tax professional for personalized advice. TaxBook.pro does not provide tax, legal, or accounting advice.