The residence of an individual for personal income tax purposes determines:
AWhether the individual pays tax at all
BWhich tax authority is entitled to the taxCORRECT
CThe rate of tax applicable
DThe reliefs the individual can claim
ICANTaxationNigerian Tax System and Administration2023
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Toaster Teacher
Why the answer is B, and why the others tempt you.
Rates and reliefs under PITA are uniform nationwide. Residence determines which state's Board of Internal Revenue collects the tax, based on where the taxpayer has a place of residence on the first day of the year of assessment.
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