With the deadline fast approaching, many taxpayers across Nigeria are still unsure about how to properly file their personal income tax returns and stay compliant with the law.
Under the Nigeria Tax Act 2025, every income-earning individual is required to file an annual tax return covering earnings from the previous year.
Earlier in January, the Minister of State for Finance, Taiwo Oyedele, urged Nigerians to meet the deadline, emphasising that both employers and individuals have clear responsibilities under the law. He noted that individual taxpayers must file their self-assessment and that compliance levels remain low.
He also clarified that employees cannot assume their tax obligations end once deductions are made from their salaries.
LIRS Extends Deadline For Individuals
The Lagos State Internal Revenue Service (LIRS) has announced a two-week extension for filing individual annual tax returns, shifting the deadline from April 1 to April 14, 2026.
According to the Executive Chairman, Ayodele Subair, the extension is designed to give taxpayers more time to complete accurate filings.
He reiterated that March 31 remains the statutory deadline nationwide but encouraged Lagos residents to take advantage of the extension.
Dr. Subair also stressed that filing must be done electronically via the official LIRS eTax platform, noting that manual submissions are no longer accepted.
Processes On How To File Tax
Understand Your Tax Category
Personal Income Tax is managed by the State Internal Revenue Service where you reside.
Salaried employees are taxed through the PAYE system, but many states still require annual filing for documentation and Tax Clearance Certificate purposes.
Self-employed individuals, freelancers, and business owners must file independently, as they calculate and declare their own taxes.
Obtain Your Tax Identification Number (TIN)
A Tax Identification Number (TIN) is mandatory for filing.
It can be generated online using your National Identification Number (NIN) or obtained through the Federal Inland Revenue Service or your state tax authority.
Determine Your Total Income
You must declare all sources of income, including:
Salaries and wages
Business income
Freelance earnings
Rental income
Dividends and interest
Foreign income (if applicable)
After this, apply deductions and reliefs. Nigeria operates a progressive tax system, with the first ₦800,000 taxed at 0%.
Prepare and File Your Return
Your tax return should include:
Total income
Deductions and reliefs
Tax payable
Filing can be done online via your state tax portal or physically at designated offices (where applicable). Ensure all personal and financial details are accurate.
Claim Reliefs and Deductions
Under the Nigeria Tax Act 2025 (effective January 1, 2026), the Consolidated Relief Allowance has been removed.
Instead, rent relief can be claimed calculated as the lower of ₦500,000 or 20% of annual rent paid, with proper documentation.
Other deductions like pension and National Housing Fund contributions still apply with proof.
Submit Before The Deadline
The official deadline remains March 31 nationwide, except for Lagos where it has been extended to April 14, 2026.
Late filing may result in penalties, fines, or additional charges depending on the duration of default.
Who Must File Tax Returns?
Even employees under PAYE may need to file if they:
Have additional income (rent, freelance, etc.)
Run a business
Have multiple income streams
Changed jobs within the year
Self-employed individuals must file without exception.
Documents Required for Filing
Prepare the following:
Tax Identification Number (TIN)
Valid ID
Payslips or income records
Bank statements
Business or freelance records
Proof of deductions (pension, insurance)
Rent receipts (for relief claims)
Previous tax records
After Submission
Once filed, you will receive an acknowledgement from your State Internal Revenue Service.
Authorities may accept your filing or issue an assessment, which you can challenge within the legal timeframe.
Why Compliance Matters
Filing tax returns is a legal requirement in Nigeria.
Beyond avoiding penalties, compliance is essential for accessing services like loans, visas, and government contracts, all of which often require a Tax Clearance Certificate.
As deadlines approach, early preparation and timely submission remain the best way to avoid unnecessary stress and penalties.
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