How to File Tax Returns in Nigeria: Complete Guide

Filing tax returns is a legal obligation for individuals and businesses in Nigeria. Whether you're employed, self-employed, or running a company, understanding the filing process ensures compliance and helps you avoid penalties.

This comprehensive guide covers everything you need to know about filing tax returns in Nigeria under the Tax Act 2025.

Table of Contents

1. What is a Tax Return?
2. Who Must File Tax Returns?
3. Types of Tax Returns
4. Filing Deadlines Calendar
5. How to File Personal Tax Returns
6. How to File Company Tax Returns (CIT)
7. How to File PAYE Returns
8. How to File VAT Returns
9. Required Documents Checklist
10. Common Filing Errors
11. What Happens After Filing?

What is a Tax Return? {#what-is-tax-return}

A tax return is an official document submitted to the Federal Inland Revenue Service (FIRS) or State Internal Revenue Service (SIRS) that reports:

• Your income (or company revenue)
• Allowable deductions and expenses
• Tax liability (amount owed)
• Tax already paid (withholdings, advance payments)
• Refund due or additional payment required

Purpose of Tax Returns:

✓ Compliance - Fulfill legal tax obligations
✓ Assessment - FIRS calculates your correct tax liability
✓ Refunds - Claim overpaid taxes
✓ Record-Keeping - Official documentation of tax history
✓ Access Services - Required for loans, visas, government contracts

Who Must File Tax Returns? {#who-must-file}

Mandatory Filing:

You MUST file tax returns if you are:

Individuals:

• Self-employed (freelancers, consultants, business owners)
• Directors of companies
• High-earning employees (some states require annual filing)
• Property landlords (rental income)
• Anyone with investment income (dividends, interest)

Companies:

• All limited liability companies (Ltd/PLC)
• Foreign companies operating in Nigeria
• Partnerships registered as companies

Employers:

• Any business employing workers (PAYE returns)

VAT-Registered Businesses:

• Businesses with turnover ≥ ₦25M
• Voluntary VAT registrants

Who Doesn't Need to File:

Employees: If you're a salaried employee and your employer deducts PAYE correctly, you generally don't need to file individual returns (employer files on your behalf).

Exception: Some states require high earners to file annual "Tax Clearance Certificate" applications.

Types of Tax Returns {#types-of-returns}

| Return Type | Who Files | Frequency | Deadline | |-------------|----------|-----------|----------| | Personal Income Tax | Self-employed, directors | Annually | January 31 | | Company Income Tax (CIT) | Companies | Annually | 6 months after year-end | | PAYE | Employers | Monthly | 10th of next month | | VAT | VAT-registered businesses | Monthly | 21st of next month | | Withholding Tax (WHT) | Companies making payments | Monthly | 21st of next month |

Filing Deadlines Calendar {#deadlines}

Monthly Deadlines:

10th of Every Month:

• PAYE Returns - Employers remit employee tax deductions

21st of Every Month:

• VAT Returns - VAT-registered businesses file and pay
• WHT Returns - Companies remit withholding tax

Annual Deadlines:

January 31:

• Self-Employed Tax Returns - Individual business owners, freelancers

June 30:

• CIT Returns (for December year-end) - Companies with Dec 31 year-end

6 Months After Year-End:

• CIT Returns (for all companies) - Based on your accounting year-end

Example:

• Company year-end: March 31, 2025
• CIT filing deadline: September 30, 2025

Penalties for Late Filing:

| Return Type | Initial Penalty | Ongoing Penalty | |-------------|----------------|-----------------| | PAYE | ₦25,000 | +₦5,000/month | | VAT | ₦50,000 | +₦5,000/month | | CIT | ₦25,000 (first month) | +₦5,000/month (max ₦5M) | | Personal Tax | ₦25,000 | +₦5,000/month |

Additional: 10% interest on unpaid tax per annum.

How to File Personal Tax Returns {#personal-returns}

For self-employed individuals, freelancers, and business owners (not registered companies).

Step 1: Calculate Your Taxable Income

Formula:

Taxable Income = Gross Income - Allowable Expenses - Reliefs

Example:

• Gross Income (freelancing): ₦5,000,000
• Business Expenses: ₦1,500,000
• Personal Relief (₦200,000) + 20% CRA: ₦1,200,000
• Taxable Income: ₦2,300,000

Use our Self-Employment Calculator for automatic calculation.

Step 2: Gather Required Documents

You'll Need:

• Income records (invoices, bank statements)
• Expense receipts (rent, transport, supplies)
• Previous tax clearance certificate (if any)
• Bank account details
• TIN certificate

Step 3: File Online (TaxPro-Max)

Option 1: Online Filing (Recommended)

Access TaxPro-Max:

1. Go to https://taxpro-max.firs.gov.ng
2. Log in with your TIN and password
3. Select "File Returns" → "Personal Income Tax"

Complete the Return:

1. Personal Information:

   • Verify name, TIN, address
   • Update if needed

2. Income Details:

   • Enter total gross income
   • Breakdown by source (business, consultancy, rental, etc.)

3. Expenses:

   • List allowable business expenses
   • Attach receipts (scanned)

4. Reliefs and Allowances:

   • Consolidated Relief Allowance (CRA): Higher of 1% of gross income OR ₦200,000 + 20% of gross income
   • Life insurance premiums
   • National Housing Fund contributions
   • Pension contributions

5. Tax Calculation:

   • System calculates tax automatically
   • Review the computation

6. Previous Payments:

   • Enter any tax already paid
   • Attach payment receipts

7. Submit:

   • Review entire return
   • Click "Submit"
   • Download acknowledgment slip

Option 2: Manual Filing (SIRS Office)

1. Visit your State Internal Revenue Service (SIRS) office
2. Collect Personal Income Tax return form
3. Complete all sections by hand
4. Attach:
   • Income statements
   • Expense receipts
   • Previous tax receipts
   • TIN certificate
5. Submit at filing desk
6. Collect acknowledgment slip

Step 4: Pay Tax Due

If Tax is Owed:

1. Generate Payment Reference:

   • TaxPro-Max generates Remita RRR
   • Or manual filers get payment slip

2. Pay via:

   • Online banking (using RRR)
   • Bank branch (cash/transfer)
   • USSD code

3. Keep Receipt:

   • Download payment confirmation
   • Store for future reference

Step 5: Obtain Tax Clearance Certificate

After filing and payment:

1. Request Tax Clearance Certificate (TCC)
2. Processing: 2-4 weeks
3. Download from TaxPro-Max or collect at office
4. Valid for 12 months

Use TCC for:

• Contract bids
• Loan applications
• Visa applications
• Business registrations

How to File Company Tax Returns (CIT) {#cit-returns}

For limited liability companies (Ltd, PLC).

Step 1: Prepare Audited Financial Statements

Required:

• Audited Statement of Profit or Loss
• Audited Statement of Financial Position
• Notes to accounts
• Auditor's report
• Directors' report

Deadline: Complete audit before filing deadline (6 months after year-end).

Step 2: Complete Tax Computation

Calculate Taxable Profit:

Accounting Profit (from financials)
+ Add back disallowed expenses (depreciation, donations, entertainment)
- Deduct capital allowances
- Deduct approved donations (max 10%)
- Deduct loss brought forward
= Taxable Profit

Tax @ 30% on taxable profit
+ Education Tax @ 4%
= Total Tax Due

Use Our Tools:

• CIT Calculator - Automated computation
• Capital Allowances Guide

Step 3: File via TaxPro-Max

1. Log In:

   • Access TaxPro-Max with company TIN
   • Select "File Returns" → "Company Income Tax"

2. Company Details:

   • Verify company name, RC number, address
   • Confirm accounting year-end date

3. Upload Documents:

   • Audited financial statements (PDF)
   • Tax computation schedule
   • Capital allowances schedule
   • Directors' list

4. Enter Financial Data:

   • Turnover
   • Accounting profit
   • Taxable profit
   • Tax payable

5. Review and Submit:

   • Check all entries
   • Click "Submit"
   • Download acknowledgment

Step 4: Pay CIT

Payment Options:

• Online via RRR (Remita)
• Bank deposit
• Direct debit arrangement

Installment Payments: Companies can pay CIT in installments:

• Before filing deadline: 6 months after year-end
• First installment: At least 50% within first 3 months
• Balance: Within next 3 months

How to File PAYE Returns {#paye-returns}

For employers remitting employee tax deductions.

Monthly PAYE Filing Process:

Step 1: Calculate PAYE for All Employees

For each employee:

1. Calculate gross salary
2. Deduct pension (8% employee + 10% employer)
3. Deduct NHF (2.5% if applicable)
4. Apply Consolidated Relief Allowance
5. Calculate PAYE using tax rates

Use Tools:

• PAYE Calculator - Individual calculations
• Payroll Software - Bulk processing (QuickBooks, Sage, Xero)

Step 2: Prepare PAYE Schedule

Create a schedule with:

• Employee names
• TINs (if available)
• Gross salaries
• Deductions (pension, NHF)
• Taxable income
• PAYE deducted

Step 3: File Online (TaxPro-Max)

1. Log in with employer TIN
2. Select "File Returns" → "PAYE"
3. Select month (e.g., "October 2025")
4. Upload employee schedule (Excel/CSV format)
5. Enter total PAYE remittance amount
6. Submit return

Step 4: Remit PAYE to FIRS

Deadline: 10th of the following month

Example:

• October 2025 salaries paid
• PAYE filing and payment: By November 10, 2025

Payment Method:

• Generate RRR from TaxPro-Max
• Pay via bank or online banking
• Keep receipt

How to File VAT Returns {#vat-returns}

For VAT-registered businesses (turnover ≥ ₦25M).

Monthly VAT Filing Process:

Step 1: Calculate VAT

Output VAT (VAT collected on sales):

Output VAT = Standard-rated Sales × 7.5%

Input VAT (VAT paid on purchases):

Input VAT = Standard-rated Purchases × 7.5%

Net VAT:

Net VAT = Output VAT - Input VAT

Use Tools:

• VAT Calculator - Automated calculation
• Accounting Software - Tracks VAT automatically

Step 2: Prepare VAT Return

Required Information:

• Total sales (standard-rated, zero-rated, exempt)
• Total purchases (standard-rated, exempt)
• Output VAT
• Input VAT
• Net VAT payable/refundable

Step 3: File via TaxPro-Max

1. Log in with company TIN
2. Select "File Returns" → "VAT"
3. Select month
4. Enter:
   • Standard-rated sales
   • Zero-rated sales
   • Exempt sales
   • Standard-rated purchases
   • Exempt purchases
   • Output VAT
   • Input VAT
   • Net VAT
5. Upload supporting documents (sales/purchase registers)
6. Submit

Step 4: Pay VAT

Deadline: 21st of the following month

Example:

• October 2025 VAT collected
• Filing and payment: By November 21, 2025

Payment:

• Generate RRR
• Pay via bank/online
• Upload proof of payment to TaxPro-Max

Required Documents Checklist {#documents}

For Personal Tax Returns:

• [ ] TIN certificate
• [ ] Income statements (invoices, contracts, bank statements)
• [ ] Expense receipts (business-related)
• [ ] Previous tax clearance certificate
• [ ] Bank account details
• [ ] National ID or passport

For Company Tax Returns (CIT):

• [ ] Company TIN certificate
• [ ] CAC certificate of incorporation
• [ ] Audited financial statements (current year)
• [ ] Tax computation schedule
• [ ] Capital allowances schedule
• [ ] Loss carry-forward schedule (if applicable)
• [ ] Directors' list and TINs
• [ ] Previous year's tax assessment
• [ ] Proof of previous tax payments

For PAYE Returns:

• [ ] Employer TIN
• [ ] Employee list with TINs
• [ ] Monthly payroll summary
• [ ] Pension remittance evidence
• [ ] NHF remittance (if applicable)
• [ ] Bank account for refunds (if overpaid)

For VAT Returns:

• [ ] VAT registration certificate
• [ ] Sales register (invoices issued)
• [ ] Purchase register (invoices received)
• [ ] Output VAT calculation
• [ ] Input VAT calculation
• [ ] Previous month's return (for continuity)

Common Filing Errors {#errors}

1. Missing Filing Deadline

Error: Filing after the deadline.

Fix: Set calendar reminders 1 week before deadline.

Penalty: ₦25,000 + ₦5,000/month ongoing.

2. Incorrect Income Reporting

Error: Understating income or overstating expenses.

Fix: Keep accurate records, reconcile with bank statements.

Risk: FIRS audits can discover discrepancies, leading to penalties and interest.

3. Not Claiming Allowable Reliefs

Error: Forgetting Consolidated Relief Allowance or other deductions.

Fix: Use tax calculators to ensure all reliefs are applied.

Impact: Overpaying tax unnecessarily.

4. Incomplete Documentation

Error: Submitting returns without required attachments.

Fix: Use checklists above before submission.

Result: Return rejected, delayed processing.

5. Wrong Tax Office

Error: Filing with FIRS instead of SIRS (or vice versa).

Fix:

• Personal tax (self-employed): File with SIRS (state)
• Company tax (CIT): File with FIRS (federal)
• PAYE (employers): File with SIRS (state)
• VAT: File with FIRS (federal)

6. Not Keeping Copies

Error: Failing to download/print acknowledgment slips and receipts.

Fix: Always save digital and physical copies.

Risk: Cannot prove filing if system issues arise.

What Happens After Filing? {#after-filing}

1. Acknowledgment

Immediately after filing:

• Receive acknowledgment slip (reference number)
• Download and save for records

2. Assessment (For CIT and Personal Tax)

Timeline: 30-90 days after filing

Process:

• FIRS reviews your return
• May request additional information
• Issues assessment notice (confirming tax due)

Possible Outcomes:

• Accepted as filed - No further action
• Amended assessment - FIRS adjusts figures
• Request for clarification - Provide additional docs

3. Payment Confirmation

After paying:

• Payment reflects in TaxPro-Max account
• Status changes to "Paid"
• Tax clearance can be requested

4. Tax Clearance Certificate

For Personal/Company Tax:

• Request TCC after filing and payment
• Processing: 2-4 weeks
• Valid for 12 months
• Renewable annually

5. Possible Audit

FIRS may select returns for audit:

• Random selection or
• Risk-based (unusual figures, high refunds, etc.)

If Audited:

• Cooperate fully
• Provide requested documents promptly
• Consider hiring a tax consultant

Filing Tips for Success

✅ File early - Don't wait until deadline day
✅ Use online filing - Faster, easier, trackable
✅ Keep digital backups - Cloud storage for all docs
✅ Reconcile monthly - Don't let records pile up
✅ Automate where possible - Use calculators, accounting software
✅ Seek help early - Consult professionals if unsure
✅ Maintain 6-year records - FIRS can audit up to 6 years back

Key Takeaways

✅ Know your deadlines: PAYE (10th), VAT (21st), CIT (6 months), Personal (Jan 31)
✅ File online via TaxPro-Max for fastest processing
✅ Keep all receipts and documents for at least 6 years
✅ Use tax calculators to ensure accuracy
✅ Don't miss deadlines - penalties add up quickly
✅ Request Tax Clearance after filing and payment
✅ Respond promptly to FIRS if they request information

Tools & Resources

• PAYE Calculator - Calculate employee tax
• CIT Calculator - Calculate company tax
• VAT Calculator - Calculate VAT liability
• Self-Employment Calculator - Personal tax
• Tax Calendar - Never miss a deadline
• AI Tax Assistant - Get instant filing help

Need Help?

• Use our AI Tax Assistant for personalized filing guidance
• Consult a licensed tax consultant for complex situations
• Contact FIRS Call Center: +234 700 CALL FIRS (2255 3477)
• Email: contactcenter@firs.gov.ng

Disclaimer: Tax filing requirements and deadlines may change. Always verify current requirements with FIRS or SIRS before filing. This guide is for educational purposes and does not constitute professional tax advice.

Related Articles:

• Tax Registration Guide
• Avoiding Tax Penalties
• Record Keeping Guide
• Understanding PAYE