Personal Income Tax Act, 2004
The Personal Income Tax Act (PITA) governs the taxation of individuals, partnerships, and executors in Nigeria. It defines taxable income, prescribes tax rates, establishes allowable reliefs and deductions, and sets out compliance obligations. The Act applies to residents of Nigeria and to non-residents earning income from Nigerian sources.
Legal area: Law governing the assessment, collection, and administration of taxes.
Year enacted: 2004
Full text: https://lawsofnigeria.placng.org/laws/personal-income-tax-act.html
Key Provisions
- Section 2: Charge of tax on income of individuals
- Section 3: Graduated tax rates for income from employment and business
- Section 8: Reliefs including consolidated relief allowance
- Section 16: Allowable deductions for expenses wholly and exclusively incurred
- Section 41: Capital allowances
- Section 56: Obligation to file annual tax returns
Significance
PITA is the primary legislation for individual income taxation in Nigeria. It is administered by the Internal Revenue Service of each state for residents, and by the Federal Inland Revenue Service for federal employees and non-residents. The Act has been amended by the Finance Acts to adjust thresholds and reliefs.