LunagisthubAll Income Taxable: Understanding Nigeria’s Tax Laws
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has emphasized that all income earned in Nigeria is subject to taxation. According to Oyedele, this includes income earned from various sources, regardless of the nature of the activity or profession.
All income earned in Nigeria is taxable, including income from legitimate and illegitimate sources.
Gifts or upkeep money sent to dependants or relatives are not taxable, but payments made for services or products are subject to taxation.
The law requires taxation of income earned from all activities, regardless of whether the activity itself is legitimate or not.
The implication of this tax policy is that individuals earning income in Nigeria, including those in unconventional professions, are required to pay taxes on their earnings. This includes .
Income earned by sex workers, often referred to as “runs girls,” is taxable under the law.
Business owners and entrepreneurs are also required to pay taxes on their earnings.
Understanding Nigeria’s tax laws is essential for individuals and businesses earning income in the country. While gifts and upkeep money may not be taxable, income earned from services or products is subject to taxation. It’s crucial to comply with tax laws to avoid penalties and fines .
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