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Personal Income Tax Allowable Expenses You Must Claim

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Personal Income Tax Allowable Expenses You Must Claim – Individuals, Sole Traders or Proprietors, and employees, all make personal allowances claims to arrive at their taxable income.
Therefore, inherent questions on this fact are:
  • Is sales tax/VAT a  deductible expense for a Personal Income Tax computation?
  • Is Federal income tax an allowable deduction for corporation?
  • How much can I claim for my laundry  self employed business?
  • What are the expenses  to claim on taxes?
As a matter of fact, since Personal Income Tax concerns individuals, it’s the allowable expenses of the individuals that concerns us here. In fact, before the amendment of Nigeria’s Personal Income Tax Act, there were a variety of personal, family, wife and children allowances. But today these are no more. In this post are the only allowable deductions for now.

Personal Income Tax Allowable Expenses You Must Claim –  For The Employed & PAYE:

Furthermore, the allowable expenses you must claim are:
  • Pension contributions;
  • Life Assurance Premiums;
  • Contribution to the National Pension Fund;
  • Contribution to the National Health Insurance Scheme;
  • Gratuities;
  • Contribution to the National Housing fund;
  • Consolidated relief allowance.

For Individuals and Sole Proprietors:

In addition, the allowable expenses you must claim are:
1.Business Expenses like shop Rent, Depreciations etc.
2.PIT Computation allowable deductions:
  • Pension Contributions;
  • Life Assurance Premiums;
  • Contribution to the National Pension Fund;
  • Contribution to the National Health Insurance Scheme;
  • Gratuities.
  • Contribution to the National Housing fund
  • Consolidated relief allowance.
Personal Income Tax Allowable Expenses You Must Claim

Personal Income Tax Allowable Expenses You Must Claim

Telated Topics:

As a matter of fact, our prvious write-ups that give explanations to other elements of PIT computations are:

Personal Income Tax (PIT) Analysis: Assessable Income
Personal Income Tax (PIT) Equation: Gross Income
Then, Personal Income Tax (PIT) Formula: PAYE Computation
Personal Income Tax (PIT) Equation: PIT Computation for Sole Proprietor
Computation of Sole Proprietor’s Tax Liability in Nigeria
Sole Proprietor & Partnership Tax Conditions in Nigeria
Facts You need to Know About Sole Trader’s Tax liability

Furthermore, are –
How do I work out my taxable income in Nigeria?
And How companies get their TCC
How Start-ups Get TIN
Business Initial TCC
How to Apply for Company Annual Tax Return Riling
How to Obtain Individual Tax Clearance Certificates
Individual Annual Tax Returns & TCC
Track Your With-holding Tax Credits :

How May We Help You?

Finally, How May We Help You Indeed? See! We will help take care of your  tax management matters that conern you or your business. Just let us know through +234 8034347851     [email protected].

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Ane

Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.

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