The Federal Government has reiterated that the filing of annual tax returns by employers and individual taxpayers is compulsory, warning that compliance is not optional under Nigerian tax laws.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, made this known during a webinar organised for human resource managers, payroll officers, chief financial officers and tax managers, in partnership with the Joint Revenue Board.
The reminder comes as statutory deadlines of January 31 for employer returns and March 31 for individual self-assessment filings draw near.
Oyedele stressed that employers are required to file annual returns for their employees, including details of emoluments paid and taxes deducted, noting that organisations yet to comply have only a few days left before the January 31 deadline. He warned that failure to meet the requirement amounts to a breach of the law.
He also expressed concern over the low level of compliance among individual taxpayers, revealing that in many states across the country, fewer than five per cent of eligible taxpayers file self-assessment returns. According to him, non-compliance remains widespread, even in states considered to be the most advanced in tax administration.
Clarifying common misconceptions, Oyedele said employees cannot assume their tax obligations end with Pay-As-You-Earn (PAYE) deductions by their employers. He explained that under both the old and new tax laws, employees are still legally required to file their annual tax returns.
He assured Nigerians that efforts are ongoing to simplify the tax filing process nationwide, with tax authorities and state internal revenue services working to make compliance easier for taxpayers, including low-income earners. He stressed that all individual taxpayers must file their returns by March 31 in respect of the previous fiscal year.
Oyedele further disclosed that under the new tax law, companies benefiting from tax incentives now have an obligation to disclose such incentives when filing their returns or shortly after. He said the disclosure requirement is aimed at improving transparency and strengthening the country’s fiscal framework.
He urged employers, workers and businesses to comply with the law, noting that improved tax compliance is critical to sustaining ongoing fiscal reforms and strengthening government revenue.
