• No. 56 Hammaruwa way, Jalingo.

Tax Types

Personal Income Tax

Personal Income Tax is imposed on the income or profits of individuals who are in employment and or run their businesses either as sole proprietors or as partnerships. It is collected by the State Internal Revenue Service (SIRS) from residents in each State throughout the country including workers in the public and private sectors. The administration of the personal income tax is governed by the Personal Income Tax Act (CAP P8 LFN 2004), which empowers tax authorities to identify liable individuals, assess their incomes and apply relevant tax rates and rules

Two types of Personal Income Tax

Pay-As-You-Earn (PAYE) i.e Taxes from Employment
The Pay-As-You-Earn (PAYE) system is a method of collecting personal income tax on employees’ emoluments. Generally, employees’ emolument includes salaries, wages, pensions, bonuses, commissions etc. It is the responsibility of an employer to deduct income tax from each employee’s pay and remit to the relevant tax authority on or before the 10th day of the month following the month in which employees are paid.
Direct Assessment i.e Taxes from Self-Employed persons
Direct Assessment is a system of assessing and collecting personal income tax from self-employed persons (e.g. Professionals, Contractors, Traders, Landlords etc.) It is the duty of a self-employed person to file an annual income tax return for the income earned in the previous year, pay an estimated tax due, and submit the tax return on or before March 31st every year, without waiting for a notice of demand from the tax authority.

Withholding Taxes:

Withholding tax is a portion of money deducted from payments for services or earnings. It is deducted by a payer before payment is made to a recipient. The amount deducted at an applicable rate is remitted to the appropriate tax authority on behalf of the person or business receiving the income. The administration of the withholding tax is governed by the Personal Income Tax Act (CAP P8 LFN 2004) and the 2024 Withholding Tax Regulations.

It is a tax payable by individuals and companies on the profit made from the sale or exchange of capital assets like land, shares, machinery. Capital Gains Tax is chargeable at 10% on gains arising from disposal of chargeable assets including compensation for loss of office in excess of ₦10 million.

The administration of the Capital Gains Tax is governed by the Capital Gains Tax Act. The State Internal Revenue Service (TIRS) administers this tax when it involves an individual.

It is a tax imposed on legal instruments/documents executed by individuals, this tax is usually placed on the transfer of homes, buildings, copyrights, land, patents, securities, etc. The administration of Stamp Duty is governed by the Stamp Duty Act,(as amended)

Stamp duties on instruments executed by individuals is administered by the State Internal Revenue Service (TIRS) and may vary per instrument.

It is a levy on property (ies) used for deriving income, including rental houses, office buildings, factories etc, within a State. The levy is payable by the registered business annually.Business premises levy amounts to:

– Urban areas: ₦10,000 for initial registration and then ₦5,000 per annum for renewal in subsequent years

– Rural areas: ₦2,000 for initial registration and then ₦1,000 per annum for renewal in subsequent years.

It is an annual flat rate levy of ₦100, payable by all taxable individuals residing in the State.

It is a tax charged on goods and services consumed in hotels, bars, restaurants and event centers within Taraba State. This tax is paid by the consumers who purchase these goods and services. The businesses (hotels, bars, restaurants and event centers) serve as collecting agents and remit the consumption tax to the Taraba State Internal Revenue Service (TIRS).
The Hotel Occupancy and Restaurant Consumption Law (2022), enacted by the Tarab State House of Assembly provides a legal basis for this tax. It clearly states that this tax is imposed on goods and services consumed in hotels, facility or event centers within the territory of Taraba State.

The applicable tax rate is 1% of the total bill issued to the customers excluding Value Added Tax (VAT) and Service Charge.