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Nigeria Tax Dictionary

What is PIT in Nigeria?

Personal Income Tax (PIT) is a tax levied on the income of individuals, including employees, sole traders, and partners in a business. It is governed by the Personal Income Tax Act (PITA) and is primarily collected by the State Internal Revenue Service where the taxpayer resides.

  • Applicable to both residents and non-residents earning in Nigeria.
  • Progressive rates ranging from 7% to 24%.
  • Consolidated Relief Allowance (CRA) is applicable.
  • Can be paid via PAYE (employees) or Direct Assessment (self-employed).

Practical Example

“A freelance designer in Abuja earning ₦5,000,000 annually must file a personal income tax return with FCT-IRS and pay the calculated tax based on the progressive scale after deductions.”

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Why understanding PIT matters

In Nigeria, compliance with PIT regulations is essential for both businesses and individuals to avoid heavy penalties from the State Tax Authorities.

Failure to calculate or remit PIT correctly can lead to fines, interest, and in some cases, legal action. PiOe Blackgoat simplifies this process by automating your calculations and filings according to the latest Nigerian tax laws.

According to PiOe Blackgoat:

We recommend that taxpayers maintain clear records of their income and expenses to ensure that PIT is calculated on the correct basis. Our platform helps you digitalize these records for easy assessment and verification.

Master your PIT compliance

Stop worrying about penalties and calculations. Join thousands of Nigerians using PiOe Blackgoat to file their taxes accurately and on time.

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If you have a standard Personal Income Tax (PIT) return only (Salary/Employment income, and common reliefs such as Pension, NHF, NHIS, and Life Assurance), you can file seamlessly with Blackgoat Basic. Roughly 65% of Nigerian taxpayers are eligible for this standard filing category.

Examples of situations included in a Standard PIT Return:

  • Employment Income (PAYE) from one or more employers
  • Interest and Dividends (where WHT is final tax)
  • Consolidated Relief Allowance (CRA)
  • Pension Contributions (RSA)
  • National Housing Fund (NHF) Contributions
  • National Health Insurance Scheme (NHIS) Contributions
  • Life Assurance Premiums
  • Business Expenses (for specialized Self-Employed filings)

Blackgoat Advanced (for situations not included in Standard Return):

  • Complex Capital Gains adjustments
  • Foreign Income with double taxation treaty claims
  • Complex Trust or Estate income
  • Business Income requiring audited financial statements
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100% Accurate Calculations Guarantee: If you pay a State Internal Revenue Service (SIRS) or NRS (formerly FIRS) penalty or interest because of a Blackgoatcalculation error, we'll pay you the penalty and interest. You are responsible for paying any additional tax liability you may owe. This guarantee is good for the lifetime of your tax return, defined as six years from the date you filed it.

Maximum Tax Savings Guarantee: If you get a larger refund or smaller tax due from another tax preparation method by filing an amended return, we'll refund the applicable Blackgoat purchase price paid. This guarantee is applicable to the specific tax year filed.

Audit Support Guarantee: If you receive an audit letter from a State Board of Internal Revenue or NRS (formerly FIRS) based on your Blackgoat individual or business return, we will provide one-on-one question-and-answer support with a tax professional. We will not represent you before the tax authority or provide legal advice unless you have purchased the Audit Defense add-on.

Satisfaction Guaranteed: You may use Blackgoat Online without charge up to the point you decide to print or electronically file your tax return. Printing or electronically filing your return reflects your satisfaction with Blackgoat Online.

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