MARCH 31 DEADLINE: HOW NIGERIANS CAN FILE PERSONAL INCOME TAX RETURNS

By Aishat Momoh. O.

With the March 31 deadline fast approaching, many taxpayers in Nigeria remain uncertain about how to file their personal income tax returns and comply with legal requirements under the Nigeria Tax Act 2025.

Here’s a clear guide to help individuals meet their obligations:

Who Must File?

Filing tax returns is mandatory for:

Self-employed individuals, freelancers, and business owners

Those with multiple income sources (e.g., salary, rent, investments)

Individuals who changed jobs within the year

Even salaried employees under PAYE are often encouraged to file for record purposes and to obtain a Tax Clearance Certificate.

1. Get a Tax Identification Number (TIN)

A TIN is required before filing. It can be obtained through the Federal Inland Revenue Service (FIRS) or the relevant State Internal Revenue Service.

2. Determine Your Total Income

Taxpayers must declare all income sources, including:

Salaries and wages

Business or freelance income

Rental income

Dividends and interest

Foreign income (where applicable)

After this, deductions and reliefs are applied to determine taxable income.

3. Understand the Tax Structure

Nigeria operates a progressive tax system. Under the new law:

The first ₦800,000 of taxable income is taxed at 0%

Rent relief is available (up to ₦500,000 or 20% of annual rent, whichever is lower)

4. Prepare and File Your Return

Returns can be filed:

Online via your State Internal Revenue Service portal

Physically at designated tax offices

Taxpayers must provide accurate personal details, employment information, and income breakdowns.

5. Gather Required Documents

Ensure you have:

TIN

Valid ID

Payslips or income records

Bank statements

Proof of deductions (e.g., pension)

Evidence of rent paid (if claiming relief)

6. Submit Before March 31

The statutory deadline remains March 31 each year. Late filing may attract penalties, fines, or additional charges depending on the duration of default.

7. After Filing

Once submitted, you’ll receive an acknowledgement. The State Internal Revenue Service may review your return and issue an assessment if necessary.

Why Compliance Matters

Filing tax returns is not just a legal obligation—it is often required for:

Government contracts

Loan applications

Visa processing

Other official transactions requiring a Tax Clearance Certificate

As the deadline draws closer, early preparation and timely submission remain crucial to avoid penalties and ensure full compliance.