Federal Republic of Nigeria 

Country Overview

Capital City:

Abuja

Chief of State:

Goodluck JONATHAN
President since 2010

Head of Government:

Goodluck JONATHAN
President since 2010

Area (sq km):

923,768 (land & water)

Population:

n/a

Revenue Overview

Revenue Authority:

Federal Inland Revenue Service

Administration Head:

Mrs Ifueko Marina Omoigui OKAURU
Executive Chairman

Institution Address:

*

15 Sokode Crescent, WUSE 5 

Abuja, Federal Capital Territory,

Nigeria

(

Mobile:

+234 803 3245 689

;

e-Mail:

ifueko_omoigui@yahoo.com

Country Correspondent:

Mr Peter JEDY-AGBA

Contact Details:

'

Phone:

+234 80 33 361 665

;

e-Mail:

ushies2003@yahoo.com

Country Correspondent:

Angel PARIOLA

Contact Details:

;

e-Mail:

angelpariola@gmail.com

Tax Rate Overview

Personal Income Tax:

Tax Year:

Calendar Year

Tax Rate:

Progressive to 25%

• Nigerian residents are taxed on their worldwide income. Foreign-source income of residents is taxable if remitted to Nigeria foreign-source income in convertible currency arising from salaries, dividends, interest, rents, royalties, fees or commissions is exempt if brought into Nigeria through approved channels. Income brought into Nigeria through domiciliary accounts by athletes, playwrights, authors, musicians, artists and temporary guests who are professionals also is exempt. Non-residents are taxed on Nigerian-source income, generally via withholding at source.
• An individual engaged in full-time employment is taxed under the pay-as-you earn system. The employer withholds personal income tax from the employee's salary or wages and pays it to the tax authorities within 14 days. An individual whose only source of income is employment income from a single employer must file a tax return unless his/her employment income does not exceed NGN 30,000 per year. Other individuals pay tax by self-assessment or direct assessment. Financial statements and schedules, when applicable, must accompany the self assessment return. Payments may be made in full or, upon application, in instalments. Withholding tax suffered at source can be used to offset income tax due.

Tax Year:

12 months on a preceding year basis except for the commencement of a new business, a change of accounting date and cessation of business where special rules apply.

Tax Rate:

30%

• Nigeria corporate tax rate for non-oil and gas companies is 30%. Companies involved in petroleum operations pay Petroleum Profits Tax. For the first 5 accounting periods of a new company the Petroleum Profits Tax rate is 65.75%. For other accounting periods the tax rate is 85%.
• A corporate taxpayer must file an annual return, based on its income for the accounting year. The return is due within 6 months after the end of the accounting year. The taxpayer's audited financial statements must accompany the return.

Nature of the Tax:

Value Added Tax (VAT)

Tax Rate:

5%

Filing & Payment:

VAT returns are filed on a monthly basis, along with any payments due. The returns cover the VAT paid (input VAT) and VAT received (output VAT) in the previous month. If the input VAT paid by the taxpayer exceeds the output VAT charged to the taxpayer's customers, the taxpayer may apply for a refund. Input VAT does not include VAT paid on revenue expenses, which are otherwise charged to the profit and loss account. Various penalties and interests are charged on VAT law violations.

• Exempt goods and services include basic foodstuffs, medicines, medical devices and medical services, and exported goods and services. Some items are zero-rated.

Economic Overview

GDP per capita (PPP) %:

n/a

Tax to GDP Ratio %:

n/a

Inflation Rate %:

n/a

Currency:

Nigerian Naira