InsideTax

Nigeria Income Tax Calculator

Mobile. Offline. Do it yourself
In its bid to make easy and hassle-free the process of determining the income tax payable by employees or
individuals in the formal or informal sector, Akintola Williams Deloitte has developed an Income Tax Calculator for
Nigeria
Taxpayers are the single most both earned and the NITC is its accessibility. Once
significant group of stakeholders in unearned. downloaded on your device, you do
the Nigerian tax system, so declares not need data service to make use of
the National Tax Policy (NTP). Thus In Nigeria, the it. To access the NITC, visit
every effort that is directed at Federal Inland http://www.wecadeloitte.com/TaxCal
achieving among others: Revenue service culator from any mobile device to use
(FIRS) is the the calculator online. You can also
? simplicity, certainty and clarity as a
?
authority for download it from Google play Store
way of that taxpayers understand monitoring for Android device directly.
and trust the tax system; collection and
? low compliance cost i.e. the
? administration of Alternatively, interested users can use
economic costs of time required and tax in Nigeria. A tax the QR code shown below by directly
the expense which the taxpayer may calculator can be scanning to their phones in lieu of
incur during the procedures for accessed from its opening a browser and typing the
compliance can be managed at website to aid tax URL.
minimum levels at all times, would payers determine an
ensure an overall improvement in estimate of Nigeria Helpline
the quality of the tax system. tax that will be
deducted from their Tomiwa Adefokun
The NTP thus encourages the income. Most of +234 (0) 807 9887 393
development of structures, platforms, these online tools
tools and/or applications that can are only accessible It may be of interest to note that this
enhance and simplify compliance for via the internet. application is the first mobile
taxpayers. application developed by any of the
In its bid to make Big 4 professional service firms
Income tax computation and or its easy and hassle-free with Nigerian public as a primary
payment need not be capital the process of target. It is also the first mobile
punishment (cf: Jeff Hayes). It also determining the application to be developed by any of
does not need to trigger a feeling of payers to get an indication of the tax income tax payable these firms, locally in Nigeria, for
loss or want of control. Many people that is applicable on their income, by employees or public use.
believe that where taxes are individuals in the
concerned, they are victims, held formal or informal Join us to share our moment of innovation!
hostage by an inevitable process that sector, Akintola
allows them no input, no control Williams Deloitte This publication contains general
where people believe that they lack has developed an information only and Akintola Williams
Income Tax Deloitte is not, by means of this
control, they seldom try to assert publication, rendering accounting,
control (Richard Carlson Don't Sweat Calculator for business, financial, investment, legal, tax,
Guide to Taxes). Nigeria. The or other professional advice or services.
Calculator is a very
The reality however is that taxpayers simple application Deloitte refers to one or more of Deloitte
always complain that the tax amount that helps to Touche Tohmatsu Limited, a UK private
deducted from their pay is too high. calculate tax due in company limited by guarantee (DTTL),
line with the its network of member firms, and their
Given that under the Pay-As-You-Earn related entities. DTTL and each of its
tax regime, the employer is the Nigerian Income member firms are legally separate and
collection agent for the State Internal Tax law. The independent entities. DTTL (also referred
Revenue Service of the State in which Nigeria Income Tax to as Deloitte Global) does not provide
the employees are resident, the role Calculator (NITC) services to clients. Please see
shows in one click a www.deloitte.com/about for a more
actors in the case of corporate detailed description of DTTL and its
taxpayers involved in the process of summary of member firms.
computing tax assessed on the incomes,
individual comprise the various human allowances, Akintola Williams Deloitte a member firm
resource personnel, finance personnel deductions and net of Deloitte Touche Tohmatsu Limited,
provides audit, tax, consulting,
and external tax consultants. income both accounting and financial advisory,
monthly and corporate finance and risk advisory
In developed economies, the tax annual. services to public and private clients
authority's website is usually the first spanning multiple industries. Please visit
The plus value of us at www.deloitte.com/ng
point of reference for individual tax

International capabilities with local delivery.

Oluseye Arowolo Fatai Folarin

Partner | Tax & Regulatory Services Lead Partner | Tax & Regulatory Services
oarowolo@deloitte.com ffolarin@deloitte.com
2014. For information, contact Akintola Williams Deloitte