(By Nchetachi Chukwuajah): As the March 31 deadline for Nigerians to file their Personal Income Tax (PIT) nears, many taxpayers are unsure about how to go about the process so as to meet legal requirements.
The deadline and uncertainty about requirements have caused panic among Nigerians, even as many expressed fear of penalty for defaulting.
Filing a PIT on or before March 31 every year is part of the provisions of the Nigeria Tax Act 2025, which became effective from January 1, 2026, and mandates every individual earning income in the country to file an annual tax return covering earnings from the previous year.
In January 2026, Taiwo Oyedele, the former Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, warned that all Nigerians are legally required to file annual tax returns by March 31, regardless of their income level or whether Pay-As-You-Earn (PAYE) deductions have already been made.
Oyedele also debunked the common assumption that employees whose taxes are deducted through PAYE are exempt from filing personal income tax returns.
The tax expert stressed that the obligation applies to all taxpayers, including low-income earners, while assuring that tax authorities are working to simplify the process.
In this report, Impact Nigeria Newspaper provides a detailed step-by-step guide on how individuals can file their PIT as the March 31 deadline nears.
Among the documents required for a smooth filing process are a Tax Identification Number (TIN), a valid means of identification, payslips or income statements, bank statements, business or freelance income records, evidence of deductions (pension, insurance), proof of rent paid (for rent relief claims), and previous tax filing receipts (if applicable).
1. Understand tax category
Personal Income Tax is administered by the State Internal Revenue Service in the state of residence, not the state of origin.
For salaried employees, taxes are typically deducted through the Pay-As-You-Earn (PAYE) system. However, many states still require annual filing for record purposes, verification, and obtaining a Tax Clearance Certificate (TCC).
For self-employed individuals, freelancers, traders, and business owners, filing is compulsory, as they are responsible for declaring and calculating their taxes.
2. Obtain Tax Identification Number (TIN)
Before filing, taxpayers must have a Tax Identification Number (TIN), which serves as a unique identifier for tax activities.
The TIN can be generated online using a National Identification Number (NIN) or obtained through the Federal Inland Revenue Service or the relevant state tax authority.
3. Determine total income
Taxpayers are required to declare all income sources earned within the year, including salaries and wages, business or professional income, freelance or consulting earnings, rental income, dividends and interest income, and foreign income (where applicable).
After calculating total income, allowable deductions and reliefs are applied to determine taxable income. Under the new tax laws, individuals who earn N800,000 or less per annum are taxed at zero percent, while individuals who earn higher incomes pay progressive taxes of up to 25 percent where applicable.
4. Prepare and file return
After the determination of total income, individuals then proceed to prepare and file a return, which must include total income, deductions or reliefs, and tax payable.
Filing can be done online via the relevant State Internal Revenue Service portal or physically at designated tax offices. Taxpayers must file in their state of residence and provide accurate personal, employment, and income details.
5. Claim reliefs and deductions
The Nigeria Tax Act 2025 (effective January 1) eliminates the Consolidated Relief Allowance, and in its place, taxpayers who pay rent can claim 20 percent rent relief on annual rent paid, calculated as the lower of N500,000, provided proper documentation is submitted.
Other deductions, such as pension contributions and National Housing Fund contributions, remain applicable but require supporting evidence.
The revised tax structure also maintains a zero-rate band on the first N800,000 of taxable income.
6. Review and submit before the deadline
After inputting the required details, review them before submitting to avoid errors. The statutory deadline for filing personal income tax returns is March 31 each year. Failure to comply may attract penalties, including fines and additional charges, depending on the duration of default and state regulations.
Tax authorities advise early filing to avoid last-minute delays and technical issues on online portals.
7. Get an acknowledgement
After filing, taxpayers typically receive an acknowledgement from the State Internal Revenue Service.
Authorities may accept the return as filed or issue an assessment after review. Taxpayers have the right to challenge any assessment within the legally specified timeframe.
8. Download tax clearance certificate
Download and store your tax clearance certificate after filing and paying. It may be required to renew your international passport, bid on government contracts, or apply for loans or visas.
