March 31 deadline: taxpayers rush to file returns amid low compliance – THIS AGE

By Ayo Kehinde

With just hours to go before the March 31st deadline, many Nigerian taxpayers are still uncertain about how to file their personal tax return and comply with the legal requirements.

Under the Nigeria Tax Act 2025, every individual earning income in the country is required to file an annual tax return covering the previous year’s earnings.

In early January, Finance Minister and former Chairman of the Presidential Committee on Tax Policy and Tax Reforms, Taiwo Oyedele, urged Nigerians to file returns before the deadline, stressing that compliance remains low despite legal obligations imposed on both employers and individuals.

According to him, employees should not assume that their tax obligations end once employers deduct taxes through the Pay-As-You-Earn system.

Personal income tax in Nigeria is administered by state tax authorities such as the Lagos State Revenue Service and other state tax departments based on the taxpayer’s residency status.

While salaried employees typically receive tax deductions at source, self-employed workers, freelancers, traders and entrepreneurs must declare their income and calculate their tax liabilities themselves.

To file, taxpayers must obtain a Tax Identification Number (TIN), report all sources of income including salaries, business profits, rent, dividends and foreign income, and file returns through the relevant state tax portal or designated tax offices.

The law also introduced changes to reliefs and deductions.

The consolidated relief allowance has been abolished, while rent relief of up to ₦500,000 or 20% of the annual rent paid can now be claimed under specific conditions.

Failure to submit your application before the deadline can result in penalties, while compliance is often required to obtain a tax clearance certificate needed for loans, government contracts, visa applications and other official transactions.

As the deadline approaches, tax authorities urge individuals to complete their returns promptly to avoid last-minute penalties and system delays.

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