Compliance
PITA Compliance & Finance Act
Complete alignment with the Personal Income Tax Act (PITA) and Finance Act 2020 graduated tax bands. Fully automated, verified, and transparent.
Under the direction of the Ministry of Finance, the Anambra State Enterprise Payroll System (ASEPS) implements automated tax calculations at the employee register layer. This guarantees 100% compliance with the Personal Income Tax Act (PITA) and the revisions enacted in the **Finance Act 2020**.
Every payroll cycle, the ASEPS PAYE Engine parses each employee's gross income and automatically extracts consolidated reliefs and graduated tax rates before generating the final net disbursement profile.
Consolidated Relief Allowance (CRA) Computation
CRA represents the tax-exempt portion of an employee's gross income. In strict compliance with Finance Act guidelines, the engine automatically calculates CRA as the higher of:
- ▪1% of Gross Income plus 20% of Gross Income
- ▪₦200,000 annually (₦16,666.67 monthly) plus 20% of Gross Income
* Note: Non-taxable allowances (such as housing, transport, or utility allowances, where statutorily capped) are isolated by the Allowance Engine before CRA calculations are finalized.
Graduated PAYE Tax Brackets
Taxable income (Gross Income less CRA and other statutory reliefs like Pensions and NHIS) is subjected to the following progressive tax bands:
| Annual Taxable Income Band | Statutory Rate | Implementation Details |
|---|---|---|
| First ₦300,000 | 7% | Minimum base rate for low-income brackets. |
| Next ₦300,000 | 11% | Primary bracket adjustment. |
| Next ₦500,000 | 15% | Standard middle-income bracket. |
| Next ₦500,000 | 19% | Upper-middle-income bracket. |
| Next ₦1,600,000 | 21% | High-income threshold bracket. |
| Above ₦3,200,000 | 24% | Maximum statutory tax bracket. |
Automated AiRS Remittance
Upon final approval of the payroll batch by the Commissioner of Finance, the PAYE allocations are bundled into a single statutory credit instruction. The funds are remitted directly to the **Anambra State Internal Revenue Service (AiRS)** bank account via the PayChoice broker, eliminating manual reconciliation steps and preventing leakage.
In closing