The Nigeria Tax Reform Bill is expected to bring significant changes to personal income tax. Here are the key highlights:
- *Tax Exemption*: If you earn less than ₦800,000 per year, you'll be exempt from paying personal income tax.¹ ²
- *Progressive Taxation*: For those earning above ₦800,000, the tax rates will be progressive, with higher earners paying more. The tax rates are as follows:
- First ₦800,000: 0%
- Next ₦2.2 million: 15%
- Next ₦9 million: 18%
- Next ₦13 million: 21%
- Next ₦25 million: 23%
- Above ₦50 million: 25%
- *Reduced Tax Burden*: The new tax regime aims to reduce the tax burden on low-income earners, allowing them to keep more of their hard-earned money.
- *Increased Tax Compliance*: The bill also introduces measures to improve tax compliance, including the requirement for financial institutions to report individuals with high transaction volumes.
Overall, the tax reform bill aims to create a fairer and more efficient tax system, with benefits for both individuals and businesses.
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