Hi Iking!
How does someone who doesn’t have a fixed income every month file for PIT?
For example, as a Keke napep driver, some days you make #5,000, some days more, some days less, even some days none.
And from the cumulative of those days that you made income, you pay house rent, you spend to repair when their is fault with the vehicle and some other expenses.
I saw your answer to someone that asked this question as well but one thing I don’t really understand about the answer you gave was step 5 where you said ‘other income like rent and other things. Now, for someone that is a tenant, is rent an income?
I will appreciate your reply to my sort of situation sir.
It’s completely understandable to be confused about the "rent" part. When tax experts say "rent," they usually mean money you receive (like a landlord), not the rent you pay as a tenant. As a Keke driver in Lagos, your income isn't "fixed," but the process for filing your Personal Income Tax (PIT) iRead more
It’s completely understandable to be confused about the “rent” part. When tax experts say “rent,” they usually mean money you receive (like a landlord), not the rent you pay as a tenant.
As a Keke driver in Lagos, your income isn’t “fixed,” but the process for filing your Personal Income Tax (PIT) is actually quite straightforward.
Here is the concise breakdown for your specific situation:
1. The “Rent” Confusion Cleared Up
2. How to Calculate Your Taxable Income
Since your daily earnings change, you must look at your Annual Total, not your monthly average.
Important: You cannot subtract personal costs like food, school fees, or your house rent from your tax calculation. Only Keke-related costs count.
3. Filing in Lagos (LIRS)
Lagos uses a “Progressive Tax” system. This means you pay a small percentage on the first ₦500k, a bit more on the next ₦500k, and so on.
A Simple Example for You
(You then pay tax based on this ₦1M, regardless of how much your house rent cost you.)
Summary for a Keke Driver
Goodluck!
See lessAh, I see exactly where the confusion comes from, and it’s a common one. Let’s go step by step and clarify how Personal Income Tax (PIT) works for someone like a Keke Napep driver in Lagos who has irregular income. I’ll also explain the “rent” part. 1. Who should file PIT In Nigeria, anyone earningRead more
Ah, I see exactly where the confusion comes from, and it’s a common one. Let’s go step by step and clarify how Personal Income Tax (PIT) works for someone like a Keke Napep driver in Lagos who has irregular income. I’ll also explain the “rent” part.
1. Who should file PIT
In Nigeria, anyone earning income, whether regular or irregular, is subject to Personal Income Tax. That includes:
Employees with salary (PAYE)
Self-employed people (like you, a Keke driver)
People earning from other sources (business, rent, freelance work, etc.)
So yes, even if your income varies daily, you are required to file tax on your total income for the year.
2. Determining your taxable income
For someone with variable income:
Track all earnings – Keep a record of your daily income. For example:
Day 1: ₦5,000
Day 2: ₦3,000
Day 3: ₦0
…and so on.
Calculate total income for the year – Sum up all your daily earnings to get your gross annual income.
3. Deductible expenses
You mentioned paying for repairs, fuel, and other business-related costs. You can subtract allowable business expenses to arrive at your net taxable income. Examples:
Repairs on your Keke Napep
Fuel/maintenance
Any licenses or permits related to your work
⚠️ Personal expenses, like food or house rent you pay as a tenant, are not deductible.
4. Taxes on other income (the “rent” confusion)
When I said “other income like rent,” I meant income you receive from renting out property, not rent you pay as a tenant.
Rent received = taxable income
Rent paid = personal expense → not taxable, not deductible
So for your situation: ignore the rent you pay as a tenant. It’s not income.
5. How to file PIT in Lagos as a self-employed person
In Lagos (and other Nigerian states):
Register with the State Tax Authority if you haven’t already. You may need a Tax Identification Number (TIN).
Prepare your total annual income statement (sum of all your earnings for 2025).
Deduct allowable business expenses (repairs, fuel, etc.) to get net income.
Apply Lagos State PIT rates:
Taxable Income (₦)
Tax Rate
0 – 300,000
7%
300,001 – 600,000
11%
600,001 – 1,100,000
15%
1,100,001 – 1,600,000
19%
1,600,001 – 3,200,000
21%
3,200,001 – 5,000,000
24%
5,000,001 +
24% + ₦?
(These are cumulative progressive rates.)
File online or at the LIRS office, pay your tax, and keep the receipt.
✅ Summary for you as a Keke driver:
Track all daily earnings.
Deduct business-related expenses only.
Ignore rent you pay as a tenant.
File and pay based on net taxable income.
If you want, I can make a simple template for a 2025 PIT calculation specifically for Keke drivers with variable daily income—it’ll show exactly how to add daily income, deduct repairs, and calculate Lagos tax.
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