GROW YOUR BUSINESS IN NIGERIA
Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost
Praxima Services Includes
Full Payroll Outsourcing
Hybrid Payroll Outsource
International Payment Management
Social Security Filing
Interact with Local Authorities
Human Resources Management System
Integration with all Accounting and Third Party
Benefits of outsourcing to Praxima
Local Tax Compliance
Secure Data Transferring
Running Your Payroll
Focus on Your
International Quality Payroll in Nigeria
Payroll in Nigeria
Income tax rate in Nigeria is calculated on a sliding scale ranging from 7% to 24%. Residents are taxed on their worldwide income while non-residents are only taxed on their Nigerian-source income.
TAX RATES | 2022
Taxable income in Nigerian Naira (NGN)
NGN Tax Rate
0 - 300,000 7%
300,001 - 600,000 11%
600,001 - 1,100,000 15%
1,100,001 - 1,600,000 19%
1,600,001 - 3,200,000 21%
Above 3,200,000 24%
SOCIAL SECURITY | 2022
Both the employee and employer contributes monthly towards the employee's Social Security, which covers benefits for disability, sickness, maternity and retirement. Employees contribute 8% of their salary, while employers contribute 10% of the employee's salary to the various benefit schemes.
STATUTORY FILING | 2022
After the applicable taxes has been deducted from the employee's salary via the PAYE system, it is the employer's obligation to remit such funds to the revenue office by the 10th of the following month. An individual is not required to file a tax return if his/her employment income is below NGN 30 000 per year.
The following categories of revenues and capital gains are subject to individual income tax, each taxable under separate rates:
Real estate revenue and capital gains
Revenues derived from agricultural farms
Revenue and capital gains on financial instruments.
Nigeria uses the PAYE (Pay As You Earn) system to process income tax payable to the State Internal Revenue Service (SIRS) . Nigerian tax residents are taxed on their worldwide income while non-residents are only taxed on their income sources within Nigeria.
Any foreign sourced income of residents that arises from interest, rents, royalties, dividends, fees and commission will be exempted from tax on the condition that the funds are brought into Nigeria in a convertible currency and paid into a domiciliary bank account approved by the government. A similar requirement is applicable to athletes, authors, professional artists, musicians and play-writers for any income sources outside of Nigeria.
Your HRMS is Standard
An individual will be considered a resident should he/she be present in Nigeria for at least 183 days in a 12 month period or is he/she serves the country as a diplomat of diplomatic agent abroad.
PAYMENTS, REPORTING & FILING
Direct payment into employee bank accounts. Emailed password protected pay slips.
Payment of taxes, benefit providers and other creditors.
Filing of returns to the authorities.
Generation and filing of statutory reports.
General ledger and 100's of customisable reports.