The Digest:
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has directed that all individual taxpayers in Nigeria must file their annual tax returns by March 31. Speaking at a webinar for finance professionals, Oyedele emphasized that compliance is a legal obligation for both employers and individuals, clarifying that employees are not exempt simply because their employer deducts taxes from their salaries. He noted that filing rates are critically low nationwide, with even the most sophisticated states seeing less than 5% compliance. The directive is part of broader reforms that also require businesses benefiting from tax incentives to disclose them in their returns.
Key Points:
- The mandate seeks to dramatically broaden Nigeria's tax base and improve compliance, moving toward a more formalized and accountable revenue system.
- It imposes a new administrative responsibility on millions of Nigerians, particularly salaried employees who previously believed their tax duties ended with PAYE deductions.
- The government aims to capture more accurate economic data and revenue, while citizens and businesses must adapt to stricter filing requirements.
- The push represents a significant shift in tax administration culture, from one of low compliance to enforced universal filing.
- Announced with a clear March 31 deadline, the timing provides immediate urgency and marks the start of a new enforcement cycle under the revised tax laws.
This directive marks a decisive step in Nigeria's tax reform agenda, aiming to institutionalize widespread compliance and enhance the government's fiscal data and revenue generation capabilities.
Sources
Webinar address by Taiwo Oyedele
Tags
Taiwo Oyedele, Tax Returns, Fiscal Policy, Nigeria, Compliance, March 31 Deadline, Tax Reform, NB Digest
