By Ayo Kehinde
With only hours left before the March 31 deadline, many Nigerian taxpayers are still uncertain about how to file their personal income tax returns and comply with statutory requirements.
Under the Nigeria Tax Act 2025, every individual earning income in the country is required to file an annual tax return covering earnings from the preceding year.
Earlier in January, the Minister of State for Finance and former Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, urged Nigerians to submit their returns before the deadline, noting that compliance remains low despite legal obligations placed on both employers and individuals.
According to him, employees should not assume their tax obligations end once employers deduct taxes through the Pay-As-You-Earn system.
Personal income tax in Nigeria is administered by state tax authorities such as the Lagos State Internal Revenue Service and other State Internal Revenue Services based on the taxpayer’s state of residence.
While salaried employees typically have taxes deducted at source, self-employed individuals, freelancers, traders, and business owners must declare their income and calculate their tax liabilities themselves.
To file, taxpayers must obtain a Tax Identification Number (TIN), declare all income sources including salaries, business earnings, rent, dividends, and foreign income, and submit their returns through the relevant state tax portal or designated tax offices.
The law also introduced changes to reliefs and deductions.
The Consolidated Relief Allowance has been abolished, while rent relief of up to ₦500,000 or 20 percent of annual rent paid can now be claimed under specific conditions.
Failure to file before the deadline may attract penalties, while compliance is often required to obtain a Tax Clearance Certificate needed for loans, government contracts, visa applications, and other official transactions.
As the deadline approaches, tax authorities are urging individuals to complete their filings promptly to avoid sanctions and last-minute system delays.
