PERSONAL INCOME TAX ACT

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LAWS OF THE FEDERATION OF NIGERIA

PERSONAL INCOME TAX ACT

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EXPLANATORY MEMORANDUM

This version incorporates Personal Income Tax (Amendment) Act [No. 20] 2011.

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ARRANGEMENT OF SECTIONS

PART I – Imposition of tax and income chargeable

1. Imposition of tax.
2. Persons on whom tax is to be imposed.
3. Record of deduction.
4. General provisions as to valuation of benefits.
5. Valuation as to living accommodation.
6. Business or trade only partially carried on or deemed to be carried on in Nigeria.
7. Relevant tax authority may assess and charge tax on the turnover of a business, etc.
8. Partnership.
9. Agricultural, etc., profit.
10. Employment.
11. Tax credit allowable against tax payable on income derived from outside Nigeria.
12. Nigerian dividends.
13. Foreign income.
14. Interest.
15. Territory in which dividend or interest paid by a Nigerian company arises.
16. Settlement, trusts and estates.
17. Artificial transactions.
18. Certain appeals.
19. Income exempted.

PART II – Ascertainment of income

20. Deduction allowed.
21. Deductions not allowed.
22. Waiver of refund of liability or expense.

PART III – Ascertainment of assessable income

23. Basis for computing assessable income.
24. New trades.
25. Cessation of trades, etc.
26. Employment and pensions.
27. Trusts and estates.
28. Itinerant workers.
29. Continuity of trades, etc.
30. Apportionment of income.
31. Receipts and payment after cessation of trade, etc.
32. Ascertainment of chargeable income.
33. Personal relief and relief for children, dependants.
34. Deductions to be claimed.
35. Proof of claims.

PART IV – Ascertainment of total income

36. Total income from all sources.

PART V – Rate of tax and double taxation

37. Charge of income tax.
38. Avoidance of double taxation arrangement.
39. Method of calculating relief to be allowed for double taxation.

PART VI – Persons chargeable and returns

40. Persons chargeable and returns.
41. Returns by taxable person.
42. Place of an offence.
43. Returns not to be filed where income is N30,000 or less.
44. Self-assessment by individual.
45. Bonus for early tiling of self-assessment returns.
46. Power to call for further returns.
47. Power to call for returns, books, documents and information.
48. Disclosure and procurement of information.
49. Information to be delivered by bankers.
50. Power to appoint agent.
51. Returns to be deemed to be furnished with due authority.
52. Books of account.
53. Power to enter and search premises, etc.

PART VII – Assessments

54. Assessment of income tax.
55. Additional assessment.
56. List of persons assessed, etc.
57. Service of notice of assessment.
58. Revision in case of objection.
59. Errors and defects in assessment and notice.

PARTVIII – Appeals

60. Establishment of Body of Appeal Commissioners.

61-66.       [Deleted by Act No. 20 of 2011]

67. Appeal provisions of Companies Income Tax Act to apply with certain exemptions.

PART IX – Collection, recovery and repayment of tax

68. Payment of income tax.
69. Deduction of tax on rent.
70. Deduction of tax on interest, etc.
71. Deduction of tax on dividend.
72. Deduction of tax on director’s fees.
73. Deduction of tax at source.
74. Penalty for failure to deduct tax.
75. Application of provision.
76. Penalty for non-payment of income tax.
77. Interest for late payment of income tax.
78. Action for income tax by the relevant tax authority.
79. Remission of penalty.
80. Remission of tax.
81. P.A.Y.E.
82. Employer to be answerable for tax deducted.
83. Relief in respect of error or mistake.
84. Payment of tax.
85. Tax clearance certificate.

PART X – Administrative and transitional provisions

86. Joint Tax Board.
87. Establishment and composition of the State Board of Internal Revenue.
88. Functions of the State Board.
89. Establishment of Technical Committee of States Board.
90. Establishment of Local Government Revenue Committee.
91. Functions of the Revenue Committee.
92. Establishment and composition of Joint State Revenue Committee.
93. Functions.

PART XI –  Offences and penalties

94. Offences and penalties.
95. Penalty for making incorrect returns.
96. False statements and returns.
97. Penalty for offences by authorised and unauthorised persons.
98. Tax to be payable not withstanding proceedings.
99. Prosecution to be with sanction of Board.
100. Saving for criminal proceedings.
101. Place of an offence.

PART XII – Powers of tax collectors

102. Definition of tax collector.
103. Power to enter and require information.
104. Power to distrain.
105. Obstruction to be an offence.
106. Immunity from action, etc.

106A. Power to make regulations

PART XIII – Miscellaneous

107. Repeal of Cap. 173, Cap. 43 and Cap. 174 L.F.N. 1990.
108. Interpretation.
109. Short title and application.

SCHEDULES

FIRST SCHEDULE – Determination of residence

SECOND SCHEDULE – Income from settlement, trusts and estates

THIRD SCHEDULE – Income exempted

FOURTH SCHEDULE – Retirement benefit schemes

FIFTH SCHEDULE – Capital allowances

SIXTH SCHEDULE – Income tax table

SEVENTH SCHEDULE – Double taxation arrangements

EIGHTH SCHEDULE – Warrant and authority to enter premises

PERSONAL INCOME TAX ACT

An Act to impose income tax on individuals, communities and families and on executors and trustees; and to provide for the assessment and collection and ad- ministration of the tax.

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[Commencement.] [25th August, 1993]        

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