What is PAYE?

What is PAYE?

January 31, 2020

PAYE simply means “pay as you earn”. It is a tax system derived from the Personal Income Tax Act in Nigeria which is a method of tax calculation on the income of persons. This means that all tax payable under this system is predicated on the individual earnings of the person who is to pay the tax.

It is worthy of note that payment of PAYE is jurisdictional in nature as such the taxes you pay as PAYE go to the state of residence. Employers in Nigeria are the ones responsible for deducting PAYE (Pay as you earn) taxes and from their employees’ pay. Taxes deducted are required to be remitted to the appropriate tax office by the 10th day of the month following the deduction.

 

 

 

 

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    The Annual Returns for Business Names is due not later than the 30th of June each year except in the year the business was registered.
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