Personal income tax has evolved over the years in line with globalization, economic growth and expansion enhanced by accurate disclosures of incomes earned by a country’s citizenry across the world and due representation of jurisdictions in which the incomes are earned. These incomes are reported via exchange of information premised on mutual agreements and tax treaties assented to by various countries.
Nigeria as player in this global economy continues to review its personal income tax laws to embrace economic realities by putting in place mechanisms to improve compliance, reduce tax avoidance and eliminate tax evasion. The country currently operates two tax schemes guided by the provisions of the Personal Income Tax Act 2004 (as amended). These schemes include the Pay As You Earn Scheme (PAYE) for individuals in paid employment and the self-assessment scheme otherwise known as direct assessment. The self-assessment scheme is structured to ensure that all sources of incomes earned by individuals including income from employment are adequately reported for tax purposes.
As simplistic as this seems, compliance for all taxpayers captured under the personal income tax could only be achieved by sound tax advice and compilation drawn and/or prepared by an outstanding Firm like Goldwyns. As imagined personal income tax is hydra-headed and includes:
- Individuals – in the formal sector
- Self-employed persons
- Trustees …..etc.
Personal income tax department
- Personal income tax Specialized services to employed staff in the formal sector (companies and organizations)
- Personal income tax Specialized services to self-employed persons and partnerships
- Trustees tax services
- Taxation of estates
Personal income tax service is rendered within the ambits of the Personal Income Tax Act – 2007 as amended and the respective applicable “estate” legislations of the Federating States where the estate is deemed resident.