Employee Tax Reliefs (NG)
Capture life assurance, NHIS, and voluntary pension reliefs to reduce PAYE tax.
Under Nigerian Personal Income Tax (PIT) law, employees can claim deductions for certain reliefs:
- Life Assurance Premium: Requires a certified insurance certificate.
- NHIS Contribution: Requires a stamped HMO receipt.
- Voluntary Pension Top-up: Capped at one-third of gross income under NTA 2025.
To apply these reliefs, go to Settings in the sidebar, then navigate to Tax and select Reliefs. Enter the annual amounts, and the PAYE engine will automatically deduct them from taxable pay.
Step-by-step
- 1Access Tax Settings
Go to Settings in the sidebar, then select the Tax tab.
- 2Enter Relief Amounts
Under Reliefs, input the annual amounts for each applicable relief.
Ensure you have the necessary documentation for each relief. - 3Save Changes
Confirm your entries to ensure the PAYE engine applies the deductions.
