anu3:



Oh, many thanks...

WithX:



Ok, it is now clear that you have to deal with the State inland revenue board.


@ the bolded, except you are talking of Direct Assessment, for PAYE, it is progressive.

if you want to calculate it yourself,
- you sum up what you get per annum,
- Deduct Consolidated Relief of N200,000 plus 20% of Earned Income
- If you have any pension, life assurance or you pay for NHF, you deduct that too.
- After deducting all the above, then you are left with the taxable income.
- You now apply the tax rate:
First 300,000 7%
Next 300,000 11%
Next 500,000 15%
Next 500,000 19%
Next 1,600,000 21%
Above 3,200,000 24%

for example, if your taxable income after deducting the relieve and allowance amount to 700k, you apply 7% on the first 300k, 11% on the next 300k, then the remaining 100k [700 - (300+300)] will be tax at 15%........

NB: The Direct Assessment would be more appropriate as a freelance, but given the scenario you found yourself and the skepticisms you have, you can go with the above and fulfil your civic responsibility without anyone ripping you off.

For the former you need to file for Direct Assessment (DA) given that as a freelance you are under the category of Professionals. However, given the current circumstances, you can not do a DA without getting the official involve (as even LIRS that is online do not have the Form A for download on their website) as you will need to a form where you will declare all your earnings).

anu3:


Hi bro... Compliment of the season... I hope you're well.

So, I'm planning to go there by Friday or lastest next week. Yes, DA is what I need to do not PAYE. In fact, I think I'll go back to the first office which is closer to my family house, as I'm not sure I'm interested in the last branch they directed me to the last time (cos it's closer to my temporary place).



Ok, understood. It's fine to get them involved but does that mean it's compulsory that they help me pay as I perceived the last time?


And I think they have an rrr (remita) system that I can use to pay online—the woman I met didn't seem very willing to tell me full details of how to go about it, perhaps to make me dependent on her and stuff...

But this time, should I try to insist on the rrr process or get the service account details as you said about PAYE process?

Please let me know if I've missed something with the plan...


Thanks

WithX:


Same to you bro.

@Bolded, No, the officials will only guide you on the amount payable as tax after filling in the details of your earnings.
Once you know how much you need to pay, you can proceed to pay directly to the service account.
Some state service are not on Remita platform so you may not be able to generate a RRR. Rather ask for the designated bank and proceed to make your payment.

Payment Dusted...

WithX:


Same to you bro.

@Bolded, No, the officials will only guide you on the amount payable as tax after filling in the details of your earnings.
Once you know how much you need to pay, you can proceed to pay directly to the service account.
Some state service are not on Remita platform so you may not be able to generate a RRR. Rather ask for the designated bank and proceed to make your payment.

anu3:


Oh, thank you so much for the detailed info. sir.... When I go back in January I'll tell them I've spoken with experts and I only need the form/service account details to pay by myself.

Please, about deductions, I was only aware of expenses/cost of operations through the year (like data, equipment bought, etc) which you didn't mention. Or is it part of what you called consolidated relief or you forgot to mention expenses?

In fact, first time I've heard of consolidated relief, thanks—so now I understand it to mean I'll deduct 200k + 20% of the taxable sum.

Phew... The tax workers only focused on my source of income, the sum and bringing cash to them which I wasn't eager to do. Nothing about deductions...

OgaFactCheck:

The bolded shows that you are an entrepreneur or independent contractor or sole propietorship. Just like I said previously, you pay PIT through the DA option. That is why you need to fill the form A or attend interview with DA officer at State IRS. As an entrepreneur (freelancer in this case) , you must have deducted all expenses and even pay yourself reasonable salary. If your business is registered as a limited liability company, you pay PIT on that salary that you deducted, do profit or loss account to determine net receipt (revenue) after all expenses has been taken care of. On the net profit, you pay CIT (company income tax) this time to the First (Federal Inland Revenue service). It is on that your salary that you will apply the tax table provided by someone above after deducting the consolidated allowance. If your company is not a legal entity (e. g limited liability), Just treat everything as income after all expenses (data, rent etc) and follow the table after the allowance. Shalom! OgaFactCheck is trained as a community Tax Liason Officer and does not claim to be a certified tax professional.

anu3:







Well, thank so very much, bro... I've just finished paying on my phone now: DA and DL. In general, I was taxed 7.5% (after they deducted CRA).

To escape that woman, I believe God gave me the wisdom to go back to the head office and ask any random worker there to explain to me how the remita process is done. Thankfully, a man I met just asked me to bring my phone and ran through a sample of how it's done within 5 minutes nor less. It's so simple. Some other states are also on the web.

I could tell the woman wasn't happy I learnt the process (trying to hide it before), cos she could have easily inflated it and eat something—she was still almost insisting and begging to help so that I wouldn't make mistakes even before I left...

All right...

God bless...

WithX:



So true to your words.
You indeed are a patriot.

So good to know you see it through.