Post by MS INYOFU (@theconscience)

HINT – Don’t Tax Gross Salary (New Payroll Rule)

Always calculate PAYE on taxable income, not gross salary.

Explanation:
Under the new tax law, tax is applied after deductions like pension and rent relief.

Example:
Salary N1,200,000
Rent relief N120,000
Taxable income = N1,080,000

Scenario: Some accountants tax the full salary and overpay PAYE.

Question: Do you compute PAYE on gross or taxable income?

HINT – Don’t Tax Gross Salary (New Payroll Rule) Always calculate PAYE on taxable income, not gross...

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