- Says individuals must file tax returns by March 31
The new tax regime introduced by the Federal Government requires every individual who earns taxable income to file a self-assessment return declaring all sources of income by March 31 every year. Corporate organisations, on the other hand, are to submit their annual returns by January 31 each year, covering their employees’ pay and tax deductions. The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, made these clarifications while drawing attention to key filing deadlines that employers and individuals must take seriously under the new tax system.
Oyedele made the clarifications in an online engagement session held for human resource managers, payroll officers, chief financial officers, and tax managers. The session was organised recently in collaboration with the Joint Revenue Board to explain how the new Tax Reform Acts should be implemented in workplaces and businesses across the country. He added that there is now a new requirement for people and businesses that enjoy special tax incentives to file a separate return showing the incentives they benefit from.
The Joint Revenue Board, which brings together federal and state tax authorities, is expected to oversee the coordination of these rules to ensure that taxpayers experience a smooth and clear process. Oyedele explained that individuals who earn income through partnerships must pay their personal income tax to the state where each partner lives; not to a central national tax office. This approach, according to him, is meant to reflect fairness and ensure that states receive the tax revenue linked to residents living and working within their areas. Speaking on his WhatsApp platform lately, Oyedele said personal income tax remains the responsibility of state tax authorities.
“Personal Income Tax remains payable to the relevant State Internal Revenue Services, not the NRS,” he said. “All revenue agencies will work together under the Joint Revenue Board to ensure a harmonised and seamless experience for taxpayers.” Oyedele also spoke about how the new tax laws are designed to protect low-income earners. He said workers who earn the national minimum wage or less are automatically exempted from paying personal income tax. “The new laws protect low-income earners with automatic exemption for anyone earning the national minimum wage or less,” he said.
