The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has issued a stern reminder to Nigerians: tax compliance is no longer a “voluntary suggestion” but a legal obligation with fast-approaching deadlines.
Speaking at a recent webinar for HR managers and financial officers, Oyedele highlighted a massive compliance gap, noting that even in Nigeria’s most economically advanced states, individual filing rates often struggle to cross the 5% threshold.
Key Deadlines to Watch
The tax calendar is split into two critical windows that every earner and business owner must mark:
- Employers (January 31): Businesses must file annual returns detailing employee emoluments and the total tax deducted over the previous year. This includes projections for the upcoming cycle.
- Individuals (March 31): All individual taxpayers—including those under formal employment—must file their self-assessment returns for the preceding fiscal year.
The “Paye” Myth Debunked
One of the most significant takeaways from Oyedele’s address was the correction of a common misconception: that employees whose taxes are deducted via Pay-As-You-Earn (PAYE) are exempt from filing.
”Many assume that if an employer has deducted tax, they don’t have to do anything. That is wrong,” Oyedele clarified. Under both existing and revised tax laws, the act of deduction by an employer does not absolve the individual from the responsibility of filing a personal return.
New Disclosure Rules for Businesses
For enterprises enjoying specific tax incentives, the rules have become more stringent. Under the new tax reforms, companies benefiting from specialized incentives are now legally required to:
- Disclose the nature and value of the incentives.
- Submit these disclosures alongside or shortly after their standard tax returns.
Toward a Simpler System
Acknowledging the friction in the current system, Oyedele assured the public that the Joint Revenue Board and State Internal Revenue Services (SIRS) are actively working to digitize and simplify the process. The goal is to move away from cumbersome paperwork toward a user-friendly interface that encourages compliance even for low-income earners.
As the March 31 deadline for individuals approaches, tax authorities are expected to ramp up sensitization efforts to bridge the 90% non-compliance gap currently plaguing the federation.
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