GROW YOUR BUSINESS IN NIGERIA

Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost

Where to Find us

16 Wharf Road
Apapa Quays
Lagos
Nigeria

​Praxima Services Includes

  • Full Payroll Outsourcing
     

  • Hybrid Payroll Outsource
     

  • International Payment Management
     

  • Local Filing
     

  • Social Security Filing
     

  • Interact with Local Authorities
     

  • Human Resources Management System
     

  • Integration with all Accounting and Third Party

    Software

Benefits of outsourcing to Praxima

Local Tax Compliance

Secure Data Transferring

Responsive Administrators

Increase Productivity

Industry Experts

Running Your Payroll

Focus on Your

Core Business

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  |  2018 / 2019

 

Taxable income in Nigerian Naira (NGN) 

 0 - 300,000                              7%

300,001 - 600,000                   11%

600,001 - 1,110,000                15%

1,110,001 - 1,600,000             19%

1,600,001 - 3,200,000             21% 

Above 3,200,000                      24%

SOCIAL SECURITY  |  2018 / 2019

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  |  2018 / 2019

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. 

Taxable Income

 

The following categories of revenues and capital gains are subject to individual income tax, each taxable under separate rates: 

  1. Salary revenues

  2. Professional revenues

  3. Real estate revenue and capital gains 

  4. Revenues derived from agricultural farms 

  5. 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. 

Exempt Income

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 

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Employee Self-service

Payslip and tax certificate retrieval. Updating of personal particulars. Leave request and balance enquiries

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Records

Employee documents folder. Training records. Heath & Safety records. Disiplinary records. Qualifications, resume and hiring records.

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Work Flow

Workflow with different approval levels. Full work flow functionality for leave requests, expense and time-sheets

Tax Residents

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.

Get in Touch

Outsource to Praxima

Partner with us

Join Mailing List

Tel: 010 035 1050 (+27)
Int: 678 701 3384 (+1)
E-mail:  jhb@praxima.com

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