This is a form of personal Income tax
that is deducted at source from the salaries of a taxpayers. It includes all
incomes of an employee in Nigeria. Under PITA, any salary, wages, fees,
allowances or other gains or profits from an employment including bonuses,
premiums, benefits or other perquisites allowed, given or granted to an
employee are put together for PAYE purposes.
PAYE is deducted by the employers on behalf of their
employees and remitted to the relevant tax authority. Failure to deduct and or
remit can lead to penalties5 on the employer. The computations7
are done through a table, after relieving the allowable reliefs form
total employees income.