Nigeria Income Tax Calculator

Taxpayers are the single most significant group of stakeholders in the Nigerian tax system, so declares the National Tax Policy (NTP). Thus every effort that is directed at achieving among others:

• Simplicity, certainty and clarity as a way for that taxpayers to understand and trust the tax system;
• Low compliance costs i.e. the economic costs of time required and the expense that the taxpayer may incur during the procedures for compliance can be managed at minimum levels at all times, which would ensure an overall improvement in the quality of the tax system.

The NTP thus encourages the development of structures, platforms, tools and/or applications that can enhance and simplify compliance for taxpayers.

Income tax computation and or its payment need not be capital punishment (cf: Jeff Hayes). It also does not need to trigger a feeling of loss or want of control. “Many people believe that where taxes are concerned, they are victims, held hostage by an inevitable process that allows them no input, no control … where people believe that they lack control, they seldom try to assert control (Richard Carlson – Don't Sweat Guide to Taxes)”.

The reality however is that taxpayers always complain that the tax amount deducted from their pay is too high. Given that under the Pay-As-You-Earn tax regime, the employer is the collection agent for the State Internal Revenue Service of the State in which the employees are resident, the role actors in the case of corporate taxpayers involved in the process of computing tax assessed on the individual comprise the various human resource personnel, finance personnel and external tax consultants.

In developed economies, the tax authority's website is usually the first point of reference for individual tax both earned and unearned. In Nigeria, the Federal Inland Revenue Service (FIRS) is the authority for monitoring the collection and administration of tax in Nigeria. A tax calculator can be accessed from its website to aid taxpayers determine an estimate of Nigeria tax that will be deducted from their income. Most of these online tools are only accessible via the internet.

In its bid to make easy and hassle-free the process of determining the income tax payable by employees or individuals in the formal or informal sector, Akintola Williams Deloitte has developed an Income Tax  Calculator for Nigeria. The Calculator is a very simple application that helps to calculate the tax due in line with the Nigerian Income Tax law. The Nigeria Income Tax Calculator (NITC) shows in one click a summary of incomes, allowances, deductions and net income both monthly and annual.

The plus value of the NITC is its accessibility. Once downloaded on your device, you do not need data service to use it. To access the NITC, visit https://apps.deloittemanagedsolutions.com.ng/TaxCalculator/app.html from any mobile device to use the calculator online. You can also download it from Google Play Store for Android device directly.
Alternatively, interested users can use the QR code shown below by directly scanning to their phones in lieu of opening a browser and typing the URL. It may be of interest to note that this application is the first mobile application developed by any of the “Big 4” professional service firms with Nigerian public as a primary target. It is also the first mobile application to be developed by any of these firms, locally in Nigeria, for public use.