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Customer Checklist Nigeria Tax Year End

Created on  | Last modified on  Highlight Matches

Summary

This checklist will guide you to perform Tax Year End for Nigeria African tax country within the Sage 300 People system.

Description

The Nigeria Africa Tax Country Tax Year runs from 1 January to 31 December.

The following reports needs to be submitted

  • Annual declaration H1 – P.A.Y.E - This contains the names, gross income and taxes paid by employees who were in the Company's employment.
  • The H1 form should be submitted no later than the 31st January of the preceding year.
  • ITF_Form_5 – Employer’s Annual Returns of Training Contribution.
  • Nigeria IDI – Individual Data Input/e-TCC Form Employee Tax Certificate (not mandatory).

 There is no official Tax Certificates that must be issued to the employees.

All employers needs to submit to the relevant Domestic Taxes Office by 31st of January every year.

Resolution

 

STEP

 

ACTION

DONE

1. 

Latest Release:

  • Make sure you are on the latest release.
  • Make sure you have imported the Generic Tax file.

 

2. 

Tax Year End Folder:

  • Create a folder to save all applicable backups, reports and files to for reference and record purposes.

 

 

3. 

 Backup:

  • Backup Tax Year End data before any changes are made:
    Make a database backup

 

4. 

Company Basic Information:

Ensure the following information is correct:

  • Company Basic Information
  • Registered/Trading Name of the company
  • Physical address of the company
  • Postal address of the company
  • Company Tax Registration Number
  • Company NHF Reference Number
  • Company NHIS Reference Number
  • Company ITF Levy Reference Number
  • Company NSITF Reference Number
  • Pension Instrument Number
  • Pension Employer Code
  • Nature of Business

 

5. 

 Earning Definitions:

  • Verify Definition Type
  • Verify Tax Type
  • Verify Taxability Calculation Type
  • Verify Tax Percentage

 

6. 

Deduction Definitions:

  • Verify Definition Type
  • Verify Tax Type
  • Verify Taxability Calculation Type
  • Verify Tax Percentage

 

7. 

 Company Contribution Definitions:

  • Verify Definition Type
  • Verify Tax Type
  • Verify Taxability Calculation Type
  • Verify Tax Percentage

 

8. 

Fringe Benefit Definitions:

  • Verify Definition Type
  • Verify Tax Type
  • Verify Taxability Calculation Type
  • Verify Tax Percentage

 

9. 

Provision Definitions:

  • Verify Definition Type
  • Verify Tax Type
  • Verify Taxability Calculation Type
  • Verify Tax Percentage

 

10. 

Employee Information:

Personal Details:

  • Surname (no punctuation allowed)
  • First two names (no punctuation allowed)
  • Initials (no punctuation/spaces allowed)
  • Identity Number/Passport Number and Passport Country
  • Date of birth

Address Details:

  • Residential Address
  • Postal Address
  • Work Address

Statutory Details:

  • Tax Number
  • NHF Number
  • Pension Fund Number
  • Pension Fund Name
  • Child Tax Dependants
  • Relative Tax Dependants
  • Disability Flag
  • State/Province

Hierarchy:

  • Make sure that the employee is linked to the correct hierarchy.

 

11. 

 Tax Relief:

 Consolidated Relief Allowance:

  • There is a Consolidated Relief Allowance (CRA) of N200 000 or 1% of gross income, whichever is higher, plus 20% of gross income.

 Child Relief:

  • A relief of N2 500 is granted for each child up to a maximum of four children, provided that none is above 16 years or married. However, a relief can be granted for a child over 16 years if he is in a recognized school, under artisanship or learning a trade.

 Dependent Relative Relief:

  • A relief of N2 000 is granted for each dependent relative up to a maximum of two relatives who are widowed or infirm.

 Disability Relief:

  • A deduction of additional N3 000 or 20% of the gross income, whichever is higher, in the case of a disabled person who uses special equipment or the services of and attendant in the course of a paid employment.

 

12. 

Tax Deductible Deductions:

The following items are deductible from the gross income before income that is subject to PAYE is established:

  • Pension/Provident fund contribution.
  • National Housing fund contribution.
  • Life assurance premium. Limited to employee and spouse.
  • Contributions to the National Health Insurance Scheme.
  • Interest on Loan for developing an owner occupied residential house.

 

13. 

H1 Report:

Print the H1 report for all employees

Expand     Reports
Expand     Country Specific Reports
Select       H1

 

14. 

 Reconciliation:

  • Reconcile the tax paid over to the local tax authority.
  • Use the 12 Month report and H1 totals.

 

15. 

Determine Differences

  • Search for differences if tax does not balance – print detailed 12 Month report and compare with payslips for the individual months.
  • Do YTD+ adjustments on Sage 300 People if needed; client must pay difference to the local tax authority in case of short payment; client must provide the local tax authority with reason in case of overpayment.

 

16. 

 Reprint H1 Report:

  • Re-print the H1 report in order to submit to the local tax authority.

 

17. 

ITF Report:

  • Print and complete the ITF Report due date for payment is on the 1st of April every year.