Reference

Nigeria Tax Glossary

A-Z definitions of Nigerian tax terms under the Nigeria Tax Act 2025. Understand key concepts like taxable income, reliefs, and exemptions.

C

Profit made from selling an asset for more than its purchase price.

The actual percentage of your total income that you pay as tax.

A tax system where higher incomes are taxed at higher rates.

Pay As You Earn - the system where employers deduct tax from employee salaries.

A tax deduction equal to 20% of annual rent paid, capped at ₦500,000.

Payment received when leaving employment, often as compensation for job loss.

Income that is subject to taxation after deducting allowable expenses and reliefs.

Income or transactions that are legally excluded from taxation.

Your tax status based on where you live and work, determining which country can tax your income.

An official form submitted to tax authorities declaring your income and tax liability.

Income ranges that are taxed at specific rates in a progressive tax system.

Tax deducted at source before you receive payment.

Use our tax calculator to see how these concepts affect your tax calculation.