Guidelines for the operation of PAYE Schemes

INTRODUCTION

Employers of labour are expected to use these PAYE guidelines as the standard for making tax deductions and tax payments to tax offices in respect of their employees on a monthly basis.

The guidelines apply to all incomes (i.e. emoluments which includes salary and allowances) of an employee derived or deemed to be derived from Nigeria whether or not such income is received in Nigeria.

All Employers of Labour, Agents and Consultants should ensure that all employees make full disclosure of all their incomes at the beginning of the year (whether or not such income is received in Nigeria or nor) when tax forms ‘A’ are completed by them before returning same to the tax office.

Such disclosure should encompass as required by law all incomes earned, accruable, derived or accumulated in Nigeria. This includes disclosure of income paid both in Nigeria and outside Nigeria as well as full disclosure of ALL salaries and allowances paid either in cash or in kind.

Employers of Labour, Tax Agents and Consultants, and Employees who engage in incomplete disclosure of income are liable to being charged for concealment of information with intent to defraud the Government of Nigeria, an act chargeable under the criminal code of Nigeria.

The Board hereby urges all employers of labour both in the public and private sectors, to fully implement the contents of these guidelines in order to ensure a hitch free Pay-As-You-Earn (PAYE) Tax Scheme operation.

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