Below is the basis of PAYE calculation for an individual whose gross income is NGN 4 million. For the purpose of this calculation, it is assumed that pension is calculated at 8% of gross income and no NHF deduction.
|Gross income (GI)||4,000,000|
|Gross income (GI2) for consolidated relief allowance purposes (i.e. GI less pension)||3,680,000|
|Consolidated relief allowance||Higher of NGN 200,000 or 1% of GI||200,000|
|20% of GI2||736,000|
|Pension||8% of GI||320,000||(1,256,000)|
|Annual income (NGN)||PIT rate (%)||Tax payable (NGN)||NGN|
|Net income after PAYE||3,535,760|