Pay As You Earn (PAYE)

The PAYE Department was created in September 2017 from the Assessment Department with two units; Commercial and Government. The PAYE department has a total of eleven (11) staff with the Director inclusive.

Definition of PAYE

Pay-As-You-Earn is a method by which an employee pays income Tax on his earrings from employment and other sources in twelve monthly instalments over the year. It is not a tax separate or different from personal Income Tax Law No 104 of 1993 (as amended to date).

This method of deducting income tax applies to all employees resident in all Status of the Federation and to all income from employment exercised in Nigeria by such residents, even if the employee is temporarily outside Nigeria (on leave or otherwise), or receives his pay outside Nigeria.

Functions of the Department

• Capturing resident organisations with not less than five (5) employees into the tax net.

• Directing the operations of PAYE Tax Scheme in Taraba State.

• Maintenance of Database for Taxable employees, Directed Public and Private organisations.

• Assessment of PAYE Taxes in Resident Employees in the state.

• Conducting of PAYE Tax Audit on current year basis.

• Presentation of monthly progress reports on PAYE Taxes in Taraba State.