Different Taxes Collected by AKIRS
Personal Income Tax
This is a tax imposed on individuals who are either in employment or are running their own small businesses, under a business name, partnership or an enterprise. It is generally collected by state governments from those that are resident in their various states, regardless of whether they are workers of Federal, State, Local Government or in the private sector.
Withholding Taxes (Individuals only)
WHT is the specified amount deducted at source from payments accruing or made to individuals or corporate entities in respect of incomes receivable for services rendered or from investments and the remittance of same to the relevant tax authorities, in line with the provision of PITA and CITA. WHT deducted from payments to individuals are payable to State Internal Revenue Service.
Capital Gains Tax
This is a tax on the profit made from the sale or exchange of capital assets like shares, machinery and land.
Capital gains taxes are only triggered when an asset is realized, not while it is held by an investor.
The two types of Personal Income Tax (PIT)
Taxes from employment i.e Pay-As-You-Earn (PAYE)
PAYE are PIT from employees’ salaries and wages through deductions at source by an employer as provided by the relevant sections of the Personal Income Tax Act (PITA). Under S.81 and 82 of PITA, employees have an income tax obligation to be deducted from their emoluments; and employers are required to file a return with the relevant tax authorities. An employer is required to make income tax deductions from emoluments paid to employees and is subject to penalties for failure to deduct, or improper accounting for deductions.
Taxes from Self-employed Persons (Direct Assessments)
These are taxes paid from an assessment raised directly on Self-employed Persons (e.g Professionals, Contractors, Traders, Landlords e.t.c. The Self-employed person will without notice or demand file a return of income earned in the preceding year, using relevant tax form.
It is a tax imposed on legal instruments or documents executed by individuals. It is usually placed on the transfer of homes, buildings, copyrights, land, patents and securities.
Business Premises Levy
It is a tax on property used for the production of income, including rental houses, office buildings, factories e.t.c. Business premises amount to #10,000.00 for registration and N5,000.00 for renewal in subsequent years for urban areas and N2,000.00/ N1,000.00 respectively in rural areas.
Economic Development Levy (EDL)
In compliance with the laws of Akwa Ibom State, all companies, individuals, corporate citizens, service providers and all other entities connected therewith and/or carrying on business in the state, or the state territorial waters, (irrespective of whether it has an office in the state, or not) is liable to payment of Economic Development Levy. The rates change as EDL vary from one organization to another.