There are plans in motion by the Federal Government to implement a tax relief of 50%.
Companies that raise salaries or provide transportation allowances to low-income workers will benefit.
This is a section of a new bill aimed at restructuring Nigeria’s tax system.
The proposed law was obtained from the National Assembly, titled
“A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters,”
The bill review on Friday showed that they want to give tax breaks to encourage higher salaries.
According to the bill, companies can get a 50% deduction for costs in 2023 and 2024.
You can claim expenses like pay raises and travels if you earn N100,000 or less.
But here’s the thing, if you earn more than N100,000 a month, any extra salary raises won’t count for tax deductions.
By the way, companies that hire new employees and increase their workforce from 2023 to 2024 can get the deduction, as long as the new employees stay for at least three years and aren’t fired.