Most people are not aware of the source or cause of some deductions in their paychecks when they receive their salaries as employees, while some have little knowledge of what the charges are for and why it is deducted each month. These deductions are mostly tax charges called Pay-As-You-Earn (PAYE) tax.
In this article, you will learn more about the Pay-As-You-Earn tax, who is qualified to register for Pay-As-You-Earn tax, the Rivers State Internal Revenue Scheme (RiversBIRS) in Port Harcourt, and where you can file your Pay-As-You-Earn (PAYE) taxes as an employer in Rivers state in 2022.
What is Pay-As-You-Earn tax?
Income tax withheld from your paycheck prior to your receipt is known as PAYE, or “pay-as-you-earn.” This method, which was first used in 1944, is currently how most employees pay their income taxes usually called PIT (Personal income tax).
Your company sends the funds “at source,” or before they are deducted from your salary and reach your account, to the Federal Inland Revenue Service. This deduction is also acceptable for national insurance and student loan repayments.
Employees pay Pay-As-You-Earn taxes based on where they live. Consequently, if;
- The employee is a tax resident.
- It is a full or part-time employment in Nigeria for the employee
- Has a Nigerian employer
- Nigeria is the permanent base of the employer.
Who is qualified to register for PAYE?
Any individual who pays emoluments to an employee or employees must register for the Pay-As-You-Earn tax duty, which entails:
- Taking tax deductions from the employee(s)’ pay
- Paying the Federal Inland Revenue Service with the tax that was withheld.
Employers are obligated to withhold Pay-As-You-Earn tax at the current rates from employee salaries and earnings and pay that money to the Federal Inland Revenue Service by the ninth of the following month, at the latest.
Note: People with monthly employment incomes of 33,000 naira, or more i.e., above the minimum wage must pay PAYE.
Rivers State Internal Revenue Scheme (RiversBIRS) in Port Harcourt
In 1993, the Board of Internal Revenue Law 1993 was passed, creating the Rivers State Internal Revenue Service (abbreviated RIRS). It is a government organization tasked with determining, collecting, and keeping track of all taxes, fees, and levies in the Nigerian state of Rivers.
This board is involved in both the creation of tax policy and the oversight of state-due revenue collection. Its headquarters are located in GRA, Port Harcourt, at Plot GS/1, Amadi Ama Layout.
You can file your Pay-As-You-Earn tax, by walking into any of the Rivers State Internal Revenue Scheme (RiversBIRS) centres close to you in Port Harcourt or you use their online portal to start your registration and file your tax.
Filing your tax online using RIVTAMIS
The management and administration of Pay-As-You-Earn taxes have been automated by the Rivers State Internal Revenue Service (RIRS). Rivers State Tax Management Information System, an online platform, now allows Rivers State taxpayers to handle their tax issues (RIVTAMIS).
It is an efficient and simple way for taxpayers and tax administrators to manage taxes and tax information. RIVTAMIS gives the general population who pays taxes the extremely unusual chance to own their tax records and tax-related actions in addition to paying their taxes.
Some of the perks of using RIVTAMIS are:
- Comfort and simplicity: Eliminates the hassle of making a trip to the tax office for each and every tax-related issue. Your tax office is now conveniently located within reach of your workplace or mobile device.
- Licensed Transactions: Modern technology ensures that all of your transactions on RIVTAMIS are protected, safe, and secure. Without a question, we have your back.
- Amazing Qualities: RIVTAMIS has a ton of fantastic services for tax-related issues, like online payments, e-filing, requests for TCCs, online registration, online requests, demand notices, etc.
- Easy to Use RIVTAMIS was created with you in mind, and using it is as simple as taking a stroll around the Port Harcourt Amusement Park. You may begin by signing up as either an individual or a corporate enterprise.
There are conditions for flouting paying your PAY-AS-YOU-EARN tax. Therefore, it is important that you file for this tax, and pay for it when due as an employer or employee of labour.