Individuals to file tax returns by March 31, employers by January 31 — Oyedele

Every individual earning taxable income in Nigeria must now file an annual self-assessment tax return by March 31, under the Federal Government’s new tax regime.

Corporate organisations are required to submit their annual employee tax returns earlier, by January 31, detailing staff earnings and tax deductions.

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, outlined the deadlines during an online session with human resource managers, payroll officers, chief financial officers and tax managers. The engagement, held in collaboration with the Joint Revenue Board (JRB), focused on how workplaces and businesses should apply the new Tax Reform Acts.

Oyedele said individuals and businesses benefiting from tax incentives must now file a separate return disclosing those incentives.

The JRB, which coordinates federal and state tax authorities, will oversee implementation to ensure consistent procedures nationwide.

He clarified that personal income tax arising from partnership income will be paid to the state where each partner resides, not to a central authority. According to him, this ensures states receive tax revenue tied to residents within their jurisdictions.

“Personal Income Tax remains payable to the relevant State Internal Revenue Services, not the NRS,” Oyedele said on his WhatsApp platform.

He added that revenue agencies would work together through the JRB to simplify compliance for taxpayers.

On worker protections, Oyedele said the new laws exempt anyone earning the national minimum wage or less from personal income tax. He noted that some workers earning slightly above that threshold may also have no tax liability after statutory deductions and reliefs.

“Where deductible contributions and rent relief are taken into account, employees earning up to ₦100,000 per month may also see their tax liability drop to zero,” he said.

Oyedele also addressed remote work and foreign employers. He said foreign companies will no longer be considered taxable in Nigeria solely because their employees work remotely from within the country, a change aimed at improving Nigeria’s appeal to global talent and investment.

He outlined a step-by-step method for payroll officers to calculate taxes under the new system: start with gross income, add benefits-in-kind, apply deductions for pension, NHIS, NHF and similar contributions, then apply rent relief of 20 per cent of actual rent paid, capped at ₦500,000.

The first ₦800,000 of taxable income is exempt, after which progressive tax rates apply. Although the top marginal rate is 25 per cent, Oyedele said most workers will pay significantly less due to available deductions.

He said the reforms are designed to simplify compliance, protect low-income earners and ensure that federal and state governments receive the revenue needed to provide public services.

Understanding the new filing rules and meeting deadlines, he noted, will be critical for both employers and individuals to avoid penalties and make full use of the reliefs provided by law.