Nigeria – Employer of Record & Payroll
Africa Deployments Nigeria offers our clients Employer of Record solutions in Nigeria covering all of the regions within. We offer full time employment or fixed terms contracts based on your requirements in Nigeria for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on best Human Resource (HR) practices when setting up the employees locally in Nigeria. ADS currently works with a number of NGO’s & Development Agencies in Nigeria
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips.
In addition to our services we can offer you the employee in Nigeria, Medical, Disability, Life and Workmen’s Compensation Insurances.
Nigeria, an African country on the Gulf of Guinea, has many natural landmarks and wildlife reserves. Protected areas such as Cross River National Park and Yankari National Park have waterfalls, dense rainforest, savanna and rare primate habitats. One of the most recognizable sites is Zuma Rock, a 725m-tall monolith outside the capital of Abuja that’s pictured on the national currency.
What income is Taxable in Nigeria:
The Taxable income includes salaries, wages, fees, allowances and other gains or profits from employment, such as bonuses, premiums, non-cash benefits and other perquisites.
What income is exempt from taxes in Nigeria:
• Any Gratuities paid to employees at the end of contract
• Compensation for loss of office / Unemployment
• Any loss of income e.g. Severance pay
• Expenses incurred that are reimbursed for the performance of duties
• Interest income earned from debt instruments including treasury bills and corporate bonds is fully exempt while withholding tax is the final tax on dividends
Can you give Fringe Benefits:
Some employers may provide cars or accommodation and is subject to annual tax at a reduced rate. Meals allowances are not treated as part of the employee’s taxable income.
What are the Employer & Employee contributions in Nigeria:
• National Pension Scheme (NPS) – Mandatory 18% (Employer 10% & Employee 8%)
• National Housing Fund (NHF) – min wage N3,000 & above per annum 2.5% monthly
• National Health Insurance Scheme (NHIS) – Private Sector 15% (Employer 10% & Employee 5% basic salary)
• Employee Compensation Scheme (NSITF) – Employer 1% of monthly payroll as per the employee
What Double Tax Treaties are in place in Nigeria:
• Czech Republic
• South Korea
• United Kingdom
Get in touch with one of our consultants should you have any further questions regarding our Employer of Record solutions or only require a payroll solution in Nigeria.