- Who is required to file a return
- How and where to file
- Key documentation required
- The consequences of non‑compliance under the Nigeria Tax Administration Act, 2025
Read more: How to File Your Personal Income Tax in Nigeria: A Step-by-Step Compliance Guide
Who Is Required to File Personal Income Tax?
In Nigeria, every taxable person is required to file an annual Personal Income Tax return, regardless of whether tax has already been deducted at source.-
Employees under the PAYE System
- You earned income outside your employment (e.g. rental income, consulting fees, investments), or
- Your employer under‑deducted tax during the year.
-
Self‑Employed Individuals and Business Owners
- Computing your tax liability
- Paying the tax due
- Filing your annual Personal Income Tax return
Read more: Avoid These Payroll Penalties: What Every Nigerian Employer Should Know
Step‑by‑Step Guide to Filing Personal Income Tax
Step 1: Determine Your Tax Residency
Your tax residency determines where you are required to file and pay tax.-
Resident Individuals
If you live or work in a Nigerian state for 183 days or more in a year, you are deemed resident in that state and must file with its State IRS. An individual is also deemed to be resident in Nigeria if any of the following is met:
- They serve as a Nigerian diplomat, diplomatic agent, or government employee posted abroad, OR
- They have a permanent home available in Nigeria for domestic use, OR
- They have a habitual place of abode in Nigeria, OR
- They are a Nigerian who earns income from employment or business exercised wholly or partly in Nigeria, OR
- They have substantial economic and immediate family ties in Nigeria.
-
Non‑Residents
These are individuals who do not meet any of the above criteria for determining residency. However, Individuals living outside Nigeria but earning income sourced from Nigeria may still have Nigerian tax obligations, subject to applicable tax rules.
Step 2: Compute Your Taxable Income
Your taxable income includes all income earned during the year, such as:- Salaries, wages, bonuses, allowances, and commissions
- Business or professional income
- Rental income
- Investment income (dividends, interest, etc.)
- Any other taxable income earned within the year
Step 3: Pay the Tax Due
Once your tax liability has been determined, payment can be made through any of the following channels:- Your State Internal Revenue Service’s online portal
- Bank deposits using the appropriate state revenue code
- Remita or other government‑approved payment platforms
Step 4: File Your Annual Tax Return (On or Before 31 March)
By law, individuals must file their Personal Income Tax returns on or before 31 March each year, covering income earned in the preceding year. To file, you will typically need:- Pay slips or income statements.
- Financial statements (for business owners).
- Bank statements (where applicable).
- Rental agreements (if applicable).
- Investment documentation.
- Evidence of tax payments made.
- Your State IRS e-filing portal.
- Physical submission at the State IRS office.
- Completion and submission of the Taxpayer Self‑Assessment Form (Form A) available on your State IRS website.
Read more: NRS Rolls Out Nationwide E-Invoicing Regime What It Means for Nigerian Businesses
Tax Clearance Certificate (TCC): Why It Matters
Upon filing and settling your taxes, you may apply for a Tax Clearance Certificate (TCC). A TCC is official evidence that your tax affairs are in order and is commonly required for:- Government contracts and tenders
- Business registration and regulatory approvals
- Visa and immigration applications
- Loan and credit facilities
- Property and high‑value transactions
Penalties for Late or Non‑Filing
Section 101 of the Nigeria Tax Administration Act, 2025 provides that a taxable person who fails to file returns, or knowingly files incomplete or inaccurate returns, is liable to administrative penalties as follows:- ₦100,000 for the first month of default, and
- ₦50,000 for each subsequent month the failure continues
