Overview

The Personal Income Tax Act, 1993 (Chapter P8) is a comprehensive Nigerian legislation that governs the imposition, assessment, and collection of personal income tax. The Act is structured into ten parts covering various aspects of tax administration. Part I (Sections 1-19) imposes tax on the income of individuals, communities, families, and estates, defining chargeable income including employment, business, trade, profession, or vocation, with provisions for valuation of benefits, living accommodation, and exemptions. Part II (Sections 20-22) outlines allowable deductions and those not allowed. Part III (Sections 23-35) details the ascertainment of assessable income, including bases for computation, new and ceased trades, itinerant workers, personal reliefs, and claims. Part IV (Section 36) defines total income from all sources. Part V (Sections 37-39) covers rates of tax and double taxation arrangements. Part VI (Sections 40-53) addresses persons chargeable, returns, self-assessment, power to call for information, and search premises. Part VII (Sections 54-59) details assessments, additional assessments, objections, and service of notices. Part VIII (Sections 60-67) establishes the Tax Appeal Tribunal and appeal procedures. Part IX (Sections 68-85) covers collection, recovery, and repayment, including deduction at source, PAYE, tax clearance certificates, and penalties for non-payment. Part X (Sections 86-97) provides administrative provisions, establishing the Joint Tax Board, State Boards of Internal Revenue, Technical Committees, and regulations. The Act aims to ensure efficient tax collection and compliance.

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