NTAA 2025 · Compliance Centre

Nigeria changed the rules. inqom already updated.

The 2025 Nigerian Tax Administration Act introduced 40% penalties on non-deducted PAYE. inqom was built to make this impossible to trigger.

Nigerian employer obligations (2025)

Personal Income Tax (PAYE)

NTAA 2025

Legal basis	Personal Income Tax Act (amended NTAA 2025)
Rate structure	Progressive bands: 7% → 11% → 15% → 19% → 21% → 24%
Penalty (non-deduction)	40% of tax that should have been deducted
Filing deadline	Monthly — within 10 days of payroll
inqom handling	Automatic calculation and remittance preparation

Pension Contributions (Pension Reform Act)

Mandatory

Legal basis	Pension Reform Act 2014 (as amended)
Employee contribution	8% of gross salary
Employer contribution	10% of gross salary
Penalty (late payment)	10% surcharge per annum on outstanding amount
inqom handling	Automatic calculation and PSSP remittance

National Housing Fund (NHF)

Mandatory for ₦3,000+ monthly earners

Legal basis	National Housing Fund Act
Employee contribution	2.5% of basic salary
Applies to	Employees earning ₦3,000 per month or above
Employer duty	Deduct and remit monthly to Federal Mortgage Bank
inqom handling	Automatic calculation and remittance tracking

NTAA 2025 · Section 40 Penalty Rates

How much could NTAA 2025 cost your business?

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Penalty Exposure Calculator

Based on NTAA 2025 Section 40 penalty rates

Monthly Gross Payroll (₦)

Number of Employees

Eliminate This Risk with inqom

inqom handles all of this automatically

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Calculates PAYE for every employee using 2025 NTAA rates automatically

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Remits pension to all PFAs via PENCOM-approved PSSP with no manual transfers

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Flags 10 or more anomaly types before they become penalties every payroll cycle

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Generates FIRS-compliant payroll reports and a full audit trail on demand

NTAA 2025 Penalty Rates

The 2025 Nigerian Tax Administration Act introduced a 40% penalty on non-deducted PAYE tax and a 10% surcharge on late pension employer contributions. These rates apply per FIRS guidelines effective January 2025.

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