- Did You Know that tax incentives are deductions, exclusions or exemptions from a tax liability offered as an enticement to engage in a specified activity that would benefit the economy of a country in the long run?
- Did You Know that tax incentives are government measures intended to encourage individuals and businesses to either invest money into the economy or save money by reducing the amount of tax they are liable to pay
- Did You Know also knowthat, in Nigeria, there are some incentives on Personal Income Taxes (PIT)?
- The following are the four fundamental facts you need to know about the incentives given for PIT in Nigeria:
1. Section 45 of the Personal Income Tax Act, 1993 (currently compiled as Cap. P8, Laws of the Federation of Nigeria, 2004) as amended by the Personal Income Tax (Amendment) Act, 2011 (currently compiled as Cap. P8, Laws of the Federation of Nigeria Annual Supplement 2011) (altogether “PITA”) provides that a person who files his returns within the specified time and has no default be granted a 1% bonus of the tax payable.
2. Section 11 of PITA also provides that any taxable person who derives income from outside Nigeria and brings such income into Nigeria through government approved channels be granted tax credit against the tax payable by such taxable person.
3. There are also a lot of deductions allowed by the Act in different Sections such as Section 20 which make provisions for deductions allowed and Section 33 which make provisions for personal reliefs and other consolidated relief allowances.
4. Interest on foreign-currency domiciliary accounts is tax-exempted
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For more information on PIT and all tax-related issues, please do not hesitate to contact us at:
Tel: +234 700 TAXAIDE (070 829 2433), +234 1 631 0971
WhatsApp: +234 810 701 7274