The Digest:
With the March 31 deadline just hours away, taxpayers across Nigeria are reminded to file their personal income tax returns under the Nigeria Tax Act 2025. The law mandates every individual earning income in the country to file an annual return covering earnings from the previous year. Employees under PAYE must still file for verification and Tax Clearance Certificate purposes, while self-employed individuals, freelancers, and business owners are required to declare and calculate their own taxes. The Consolidated Relief Allowance has been removed, replaced by rent relief capped at N500,000 or 20% of annual rent paid.
Key Points:
- Filing is done through the State Internal Revenue Service in the taxpayer's state of residence, not the state of origin.
- Taxpayers must obtain a Tax Identification Number using their NIN before filing.
- The first N800,000 of taxable income is taxed at 0% under the progressive tax system.
- Rent relief is available with proper documentation, replacing the Consolidated Relief Allowance.
- Penalties apply for late or non-filing, and compliance is often required for government contracts, loans, and visa applications.
Sources: The Nation, Punch
