This is one of the most common questions in Nigeria:
“If my employer is already deducting tax, do I still need to pay tax myself?”
The answer is: it depends on how you earn income.
1. If You Are a Salary Earner (PAYE System)
If you work for a company:
- Your employer deducts tax from your salary
- This is called PAYE (Pay As You Earn)
- They remit it to your State Internal Revenue Service
In this case, you are already paying tax automatically
2. If You Earn Additional Income
If you:
- Freelance
- Run a side business
- Earn contract income
- Or have multiple income streams
Then PAYE does NOT cover all your income
You are still expected to pay Personal Income Tax on total earnings.
THE SIMPLE RULE
- PAYE → covers salary income only
- Other income → still taxable
RELATED READING
Know where tax is filed:
Where to File Your Tax in Nigeria
