Tax Law: Are You Supposed To Pay?.

TAX LAW: WHO IS TO PAY, HOW TO PAY AND EFFECT. In Nigeria, personal income tax eligibility is governed by the Personal Income Tax Act (PITA) and administered by both Federal and State Revenue Services. Here's a clear breakdown: Who Must Pay Personal Income Tax (PIT)? 1. Residents Individuals living in Nigeria for 183+ days per year are classified as tax residents. They are taxed on their worldwide income . 2. Non-residents & Expatriates Taxed only on income earned or sourced within Nigeria—for instance, consultancy or technical services performed in Nigeria . A special provision called Significant Economic Presence (SEP) may tax non-residents rendering professional services even without physical presence . 3. Employees and Self-employed Individuals Employees: Tax is deducted at source via PAYE by employers . Self-employed/business owners/partners/trustees: Must file and pay through direct assessment to SIRS or FIRS . 4. Executors, Trustees, Partnerships...