Developing countries are characterized by a low level of tax compliance arising from weaknesses in tax administration and trust deficits. This poses a critical challenge toward the attainment of developmental goals. This paper provides a concise survey of a number of theoretical and practical aspects of the operations of a personal income tax (PIT). It is intended to be neither comprehensive in its coverage of topics nor rigorous in its analytical treatment of the topics covered. Rather, its purpose is to inform policymakers of the most relevant concepts, issues, and comparative country developments when they are contemplating PIT reform. The paper is largely nontechnical. It adopted both descriptive and comparative methods, relying on the doctrinal approaches in its data collection method with a brief overview of some foundational issues in taxing personal income. The study compared the tax structure of Nigeria and the United States of America personal income tax systems based on some key legal indicators. The paper while identifying important differences between the countries personal income tax systems and areas of convergence, suggests among others that both countries should adopt continuous tax education system that will allow for education of its citizens in personal income tax processes, fillings, remittances and penalties; and shortcomings noted in the extant personal income tax laws and recommendations on way forward.

Keywords: Tax System / Code, Taxation, Personal Income, Nigeria Personal Income Tax, American Tax System