Tax Types

The Katsina State Internal Revenue Service administers various taxes designed to meet the revenue needs of the state and provide public services. Below are the main types of taxes:

• Personal Income Tax: This tax is imposed on the income of individuals and is progressive in nature. Higher earners pay a higher percentage of their income in taxes.
• Corporate Income Tax: Corporations operating in Katsina State are subject to tax on their profits. The tax rate is determined based on the company's revenue level and compliance history.
• Value Added Tax (VAT): A consumption tax levied on the value added to goods and services at each stage of production or distribution. The current VAT rate in Nigeria is 7.5%.
• Withholding Tax: This is a tax deducted at source from payments made to employees and contractors. It acts as an advance payment of income tax and varies based on the type of payment made.
• Capital Gains Tax: Tax on the profit made from selling or disposing of an asset. The rate is usually a percentage of the profit realized from the sale.
• Property Tax: Levied on real estate properties within Katsina State. This tax is used to fund local services and infrastructure.

Understanding these tax types is essential for compliance and effective financial planning. Taxpayers are encouraged to consult with tax professionals for guidance on their specific obligations.