March 31 Deadline: Simple Guide to Filing Your Personal Income Tax Returns
- Nigerians are required to file annual tax returns before March 31 under the new tax law
- The new law introduces rent relief and removes the Consolidated Relief Allowance
- Failure to declare all income sources and file on time may result in penalties and fines
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology, and macroeconomic trends in Nigeria.
With the March 31 deadline approaching, many taxpayers in Nigeria are still unclear about how to file their personal income tax returns and meet legal requirements under current regulations, PUNCH reported.
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Under the Nigeria Tax Act 2025, all individuals earning income in Nigeria are required to submit annual tax returns covering earnings from the previous year.
Earlier, Taiwo Oyedele had urged Nigerians to comply before the deadline, stressing that both employees and employers have responsibilities under the law.
Filing required beyond PAYE deductions
According to Oyedele, employees should not assume that tax deductions made by employers under the Pay-As-You-Earn (PAYE) system automatically fulfil their obligations.
He noted that individuals are still expected to file self-assessments, adding that compliance levels in this area remain low.
Personal income tax is administered by state tax authorities based on an individual’s place of residence, with salaried workers, freelancers, and business owners subject to different filing requirements.
Tax Identification Number and income declaration
Tax authorities require individuals to obtain a Tax Identification Number (TIN) before filing. This can be generated online using a National Identification Number or through agencies such as the Nigeria Revenue Service or relevant state internal revenue services.
Taxpayers are expected to declare all income sources, including salaries, business earnings, rental income, dividends, and foreign income where applicable.
After determining total income, allowable deductions and reliefs are applied to calculate taxable income.
Updated reliefs under new tax law
The Nigeria Tax Act 2025 introduces changes to relief structures. Notably, the Consolidated Relief Allowance has been removed.
In its place, eligible taxpayers can claim rent relief, calculated as the lower of N500,000 or 20 per cent of annual rent paid, subject to proper documentation.
Other deductions, such as pension and National Housing Fund contributions, remain applicable.
The law also provides a zero-rate tax band on the first N800,000 of taxable income.
Filing process and required documents
Tax returns can be filed online through state tax portals or physically at designated offices.
During the process, individuals are required to provide accurate personal details, employment information, and a breakdown of all income sources.
Relevant documents include TIN, identification, payslips, bank statements, records of business income, and evidence supporting deductions or relief claims.
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Penalties for non-compliance
Authorities have warned that failure to meet the March 31 deadline may attract penalties, including fines and additional charges depending on the duration of default.
They also advised early filing to avoid last-minute delays and resolve any issues that may arise during submission.
LIRS discloses those who will pay most tax in Lagos
Legit.ng earlier reported that an analysis of over 1.49 million tax records by the Lagos state Inland Revenue Service (LIRS) shows that more than half of taxpayers will pay zero tax.
According to the agency, an analysis of 1,494,491 anonymised tax records from the 2024 tax year showed that just 1.6% of Lagos taxpayers will face higher tax obligations under the new laws.
In contrast, about 98% of workers will either see a reduction in what they pay or be completely exempt. The new tax law exempts low-income earners and protects minimum wage workers from taxation.
Source: Legit.ng
