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NG Tax 2024

iCalculator™ NG: Nigeria Tax Calculators

Welcome to iCalculator™ NG, your comprehensive suite of free tax calculators for Nigeria. iCalculator™ has provided free tax calculators for Nigeria since 2014. Since those early days we have extended our resources for Nigeria to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Nigeria Tax Calculator and salary calculators within our Nigeria tax section are based on the latest tax rates published by the Tax Administration in Nigeria. In this dedicated Tax Portal for Nigeria you can access:

Nigeria Tax Calculator 2024/25

The Nigeria Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Nigeria. This includes calculations for

  1. Employees in Nigeria to calculate their annual salary after tax.
  2. Employers to calculate their cost of employment for their employees in Nigeria.
Nigeria Tax Calculator 2024
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Advanced Nigeria Salary Calculator 2024
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Discover Nigeria

Nigeria is situated in West Africa, bordered by Benin in the west, Chad and Cameroon in the east, and Niger in the north. Its southern coast is on the Gulf of Guinea in the Atlantic Ocean. This strategic location contributes to Nigeria's vibrant culture and diverse ecosystems, ranging from the lush rainforests in the south to the Sahel and the Sahara Desert encroaching from the north.

The country's culture is a rich tapestry woven from the traditions of its 250 ethnic groups, including the Yoruba, Igbo, and Hausa-Fulani, each with its unique languages, stories, and traditions. Nigeria's cultural diversity is expressed through its festivals, music, dance, art, and culinary traditions, making it a fascinating destination for cultural enthusiasts. The country is also renowned for its contribution to music and film, with the Nigerian movie industry, Nollywood, being the second largest in the world by volume of productions.

Nigeria's economy is the largest in Africa, with a gross domestic product (GDP) that covers a broad spectrum of sectors. It is heavily reliant on oil, which accounts for a significant portion of the GDP and nearly all its export earnings and government revenues. However, the country is striving to diversify its economy with sectors such as agriculture, telecommunications, and services showing rapid growth.

Agriculture remains a cornerstone of the Nigerian economy, employing a large percentage of the population. The sector is varied, with Nigeria being a major producer of commodities like cocoa, peanuts, palm oil, and cassava. Efforts to modernize the sector have been ongoing, aimed at increasing production and reducing the reliance on food imports.

The services sector, particularly telecommunications, , and entertainment, has seen explosive growth in recent years. The tech industry, boosted by a young and tech-savvy population, has positioned Nigeria as a leading startup ecosystem in Africa. The Nigerian film industry, along with music and fashion, has gained international recognition, further promoting Nigerian culture globally.

, though smaller compared to the oil sector, are significant contributors to the economy. The country manufactures a range of products, including textiles, cement, building materials, food products, and beverages. The government has implemented policies aimed at promoting industrialization and reducing dependency on oil exports.

Nigeria's economy faces challenges such as corruption, inadequate infrastructure, and a recent surge in insecurity in certain regions. Nevertheless, the government and various stakeholders are making concerted efforts to address these issues, aiming for sustainable economic growth and development.

In summary, Nigeria is a country of diverse cultures, languages, and traditions, strategically located in West Africa. Despite its economic reliance on oil, Nigeria is making significant strides in diversifying its economy, with agriculture, telecommunications, and entertainment playing pivotal roles in its economic development.

For more information on Nigeria's neighboring countries, visit their specific pages: Benin, Niger, Cameroon, and Chad.

Tax overview of Nigeria

Taxation in Nigeria plays a pivotal role in the country's economic framework, serving as a significant source of revenue for the government. The Nigerian tax system is structured to collect revenue from individuals, corporations, and goods and services, thereby funding public services and infrastructure development. The administration of taxes in Nigeria is handled by various authorities, with the Federal Inland Revenue Service (FIRS) being the main body responsible for federal taxes, while state and local governments manage their respective levies.

The country's tax system encompasses several types of taxes, including but not limited to, personal income tax, company income tax, value-added tax (VAT), customs and excise duties, and petroleum profit tax. Each of these taxes targets different segments of the economy, from individual earnings and corporate profits to consumption and international trade. This diversified tax base helps in distributing the tax burden and aligning with global tax administration practices.

Personal income tax in Nigeria is levied on the income of individuals and entities operating as sole proprietorships, with the tax rates and brackets designed to ensure progressivity and equity. For corporations, company income tax is charged on the profits, fostering a business environment where corporate contributions to the national revenue are proportionate to their economic activities.

The value-added tax (VAT) in Nigeria applies to the consumption of goods and services and is collected at each point of sale. This indirect tax is aimed at generating revenue in a manner that minimizes the direct financial burden on income earners. Customs and excise duties are levied on the import and export of goods, as well as the production of specific goods within the country, contributing to the regulation of trade and the protection of local industries.

Petroleum profit tax is of particular importance in Nigeria, given the country's status as a major oil producer. This tax is levied on the income of companies engaged in the extraction and sale of petroleum, reflecting the sector's significance to the national economy. The structure and administration of this tax are crucial for ensuring that the wealth generated from natural resources contributes to national development.

Taxation in Nigeria also faces challenges, including compliance issues, tax evasion, and administrative inefficiencies. The government and tax authorities are continuously working on reforms and leveraging technology to improve tax collection, broaden the tax base, and enhance compliance. Efforts are focused on making the tax system more efficient, transparent, and supportive of economic growth.

For individuals and businesses seeking to navigate the complexities of the Nigerian tax system, staying informed about the latest tax laws, rates, and tools is crucial. A comprehensive resource for this information can be found on our dedicated tax hub, which includes the latest tax tools and tax tables, designed to assist taxpayers in understanding and fulfilling their tax obligations effectively.