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)
PAYE — Personal Income Tax
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 + remittance preparation |
Pension — 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 + PSSP remittance |
NHF — National Housing Fund
Mandatory ≥₦3,000/mo| Legal basis | National Housing Fund Act |
| Employee contribution | 2.5% of basic salary |
| Applies to | Employees earning ₦3,000/month or above |
| Employer duty | Deduct and remit monthly to Federal Mortgage Bank |
| inqom handling | Automatic calculation and remittance tracking |
How much could NTAA 2025 cost your business?
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Penalty Exposure Calculator
Based on NTAA 2025 — Section 40 penalty rates
inqom handles all of this automatically
Calculates PAYE for every employee using 2025 NTAA rates automatically
Remits pension to all PFAs via PENCOM-approved PSSP — no manual transfers
Flags 10+ anomaly types before they become penalties — every payroll cycle
Generates FIRS-compliant payroll reports and 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 the Federal Inland Revenue Service guidelines effective January 2025.
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