Tax Rates in Nigeria

Personal Income Tax Rates

Chargeable Profit		%	Tax on Band	Cummulative Charge Profit	Cummulative Tax
First	30,000.00	5.00%	1,500.00	30,000.00	1,500.00
Next	30,000.00	10.00%	3,000.00	60,000.00	4,500.00
Next	50,000.00	15.00%	7,500.00	110,000.00	12,000.00
Next	50,000.00	20.00%	10,000.00	160,000.00	22,000.00
Over	160,000.00	25.00%

Minimum Tax
The Employment Income on which minimum tax is due is still N30,000.00

Personal Relief’s (S.33)

Personal Allowance	N5,000 plus 20% Earned income
Children Allowance	N2,500 per child (Limited to 4 children)
Dependent Relative Allowance	N2,000(max for 2)
Life Assurance Relief (LAR)	Allowances are given in respect of premium paid by the taxpayer on policies taken out of the life taxpayer.

Rates of Withholding tax for companies are as follows:

Dividend, Interest & Rent	10.00%
Royalties	10.00%
Commissions, Consultancy, Technical & Management	10.00%
Construction	5.00%
All types of contacts and agency arrangements, other than
Sales in the ordinary course of business	5.00%
Directors’ Fees	10.00%
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Companies Income Tax Rates

The income tax applicable to companies from 1961 to date are as follows:

1st April 1961 - 31st March 1972	• 40% plus super tax. (Super tax was payable under certain circumstances)
1st April 1972 - 31st March 1975	• 40% on the first N10, 000 plus 45% on the excess Over N10, 000
1st April 1975 - 31st March 1976	• NIL on the first N6, 000 plus 40% on the excess over N6,000
1st April 1976 - 31st March 1978	• NIL on first N6, 000 plus 45% on the excess over N6,000
1st April 1978 -31st March 1979	• NIL on the first N6, 000 plus 50% on the excess 6,000 • 10% special levy payable on banks excess profit
1st April 1979 – 31st March 1986	• 45% • 10% Special levy payable by banks
1st Jan 1987 – 31st Dec. 1988	• 40% • 20% Small business rate with effect from 1988 • 10% Special levy payable on banks excess Profit
1st Jan 1989 – 31st Dec. 1990	• 40% • 20% Small business rate with effect from 1988 • 10%Special levy payable on bank excess profit
1st Jan.1991 – 31st Dec. 1991	• 40% • 20% Small business rate. Special levy abolished by decree 63 of 1991
1st Jan 1992 – 31st Dec. 1992	• 35% (Decree changing rate from 40%- 35% was passed in 1993)
1st Jan.1993 – 31st Dec.1995	• 35% • 20% Small business rate 2%Educational Tax
1st Jan 1996 – Date (2008)	• 30% • 20% Small business rate 2%Educational Tax