Tax Term
What is Taxable Income?
Income that is subject to taxation after deducting allowable expenses and reliefs.
Detailed Explanation
Taxable income in Nigeria includes salaries, business profits, investment returns, and other earnings above the ₦800,000 exemption threshold. It excludes exempt income like military salaries and approved pensions.
Example
If you earn ₦5,000,000 salary and claim ₦300,000 rent relief, your taxable income is ₦4,700,000.