Knowing how to file your personal income tax returns in Nigeria is essential for both citizens and expatriates living and working in the country. This detailed 2025 guide will walk you through everything you need to know—from basic definitions and legal obligations to practical steps, deadlines, and tips for a stress-free tax return process.
What is Personal Income Tax in Nigeria?
Personal income tax in Nigeria is a compulsory charge on the income of individuals, whether earned within or outside Nigeria. The main aim is to generate revenue for government services and infrastructural development.
Who is Liable to Pay?
- Residents: Anyone who lives in Nigeria and earns income (salary, business profit, rent, etc.)
- Expatriates: Foreigners working in Nigeria for over 183 days in twelve months.
- Non-Residents: Taxed only on income earned within Nigeria.
Relevant Laws and Authorities
- Federal Inland Revenue Service (FIRS): Oversees taxes for Abuja and federal cases.
- State Internal Revenue Services (State IRS): Each state manages PIT for its residents (e.g., Lagos IRS, FCT IRS).
- Personal Income Tax Act (PITA): The law that guides personal taxation in Nigeria.
Key Differences: Residents vs. Expatriates
Residents are taxed on worldwide income, while expats are generally taxed only on their Nigerian-sourced income—unless they qualify as resident for tax purposes.
Why Filing Your Personal Income Tax Return is Essential
Filing personal income tax returns in Nigeria is not just a duty—it's a necessity.
- Legal Requirement: All eligible individuals must file annually.
- Benefits: Obtain a Tax Clearance Certificate (TCC), necessary for visas, contracts, and accessing many government services.
- Penalties: Late filing attracts hefty fines, prosecution, and even travel restrictions.
Step-by-Step Guide: How to File Your Personal Income Tax Return in Nigeria
Step 1 – Obtain Your Taxpayer Identification Number (TIN)
- How to Register for TIN: Apply online via the FIRS TIN portal or visit your nearest tax office.
- Expatriates: Must also apply for a TIN with a valid work permit/residence visa.
Step 2 – Gather Required Documentation
- Income records (payslips, bank statements)
- Evidence of allowable deductions (like pension, NHF)
- Tax relief documents (life insurance, children/dependents details)
- Proof of residency/employment
Step 3 – Choose Your Filing Method (Manual or Online)
- Manual: Submit paper forms at FIRS or State IRS offices. Recommended for those without internet access.
- Online: Use the FIRS Self-Service Portal. Many states (like LIRS) also offer online filing.
- Mobile/App Options: Some state tax authorities offer apps or USSD codes for basic tax filing.
- Tip: Online options are faster and provide instant receipts.
Step 4 – Complete and Submit Your Tax Return
- Fill out all required fields—make sure the income, deductions, and reliefs are correctly entered.
- Double-check your TIN and personal details.
- Attach necessary documents.
- Common mistakes: using an incorrect TIN, missing signatures, or omitting income sources.
Step 5 – Pay Your Tax Liability
- Payment Channels: Use Remita, Quickteller, bank transfers, or pay directly through the tax portal.
- After Payment: Always print your confirmation and receipts for your records.
Deadlines and Key Dates for Personal Income Tax Filing in Nigeria (2025)
- Annual Deadline: March 31st every year for individuals.
- Expatriates/New Residents: May have extended deadlines depending on entry date.
- Penalties: Delays lead to fines (up to ₦50,000 for first offenders and ₦100,000 for repeat offenders). Non-filing can lead to legal action.
Special Considerations for Expatriates in Nigeria
- Tax Residency Rules: Expatriates staying 183+ days in 12 months are deemed tax residents.
- Challenges: Issues like double taxation, declaring foreign income, and understanding local reliefs.
- Reporting Foreign Income: Must declare all income earned globally if considered tax resident.
- Tax Treaties: Nigeria has agreements to avoid double taxation with some countries.
- Documentation: Passport entry/exit records, residency permits, salary and allowance statements.
Deductions, Allowances, and Tax Reliefs You Should Know
Common Deductions:
- Pension contributions
- National Housing Fund (NHF)
- Life insurance premiums
Tax Reliefs
- Consolidated Relief Allowance (CRA): 20% of gross income + ₦200,000
- Dependent/child reliefs
Tip: Claiming all eligible deductions and reliefs lowers your tax liability.
Personal Income Tax Rates and How Tax is Calculated
2025 PIT Tax Bands:
| Annual Income (₦) | Tax Rate |
|---|---|
| First 300,000 | 7% |
| Next 300,000 | 11% |
| Next 500,000 | 15% |
| Next 500,000 | 19% |
| Next 1,600,000 | 21% |
| Above 3,200,000 | 24% |
Example Calculation:
If your gross income is ₦2,000,000:
- Apply all relevant rates to each band
- Deduct pension/other reliefs
- The remainder is your taxable income
Common Mistakes in PIT Filing and How to Avoid Them
- Using the wrong or inactive TIN
- Failing to declare global income (for residents/expats)
- Incorrect documentation of deductions
- Late submission
Solution: Double-check all entries and use checklists available on tax authority websites.
How to Obtain a Tax Clearance Certificate (TCC) in Nigeria
- Why TCC is Important: Needed for visa applications, contracts, and major transactions.
- How to Apply:
File all due tax returns
Ensure all taxes are paid
Apply at your local tax office or online via FIRS/State IRS portal - Documents Required: TIN, completed tax return, receipts of payment, means of identification
Resources and Support for Taxpayers in Nigeria
- FIRS Portal
- LIRS e-Tax Portal
- FIRS TIN Registration
- Remita Payment Portal
- Customer Support: FIRS Helpline: 0907 795 3718, Lagos IRS: 0700-225-5477
Related Guides:
- How to Register Your Business for Tax in Nigeria
- Understanding PIT Rates for Expats
FAQs on Filing Personal Income Tax Returns in Nigeria
1. When is the deadline for filing personal income tax returns in 2025?
March 31, 2025.
2. Can I file my PIT returns online?
Yes, through the FIRS tax portal and most state IRS websites.
3. What happens if I don’t file?
Penalties include fines, interest on unpaid tax, and possible prosecution.
4. Do expatriates declare income earned abroad?
Only if they qualify as tax residents.
5. How do I get a Taxpayer Identification Number (TIN)?
Register online at the FIRS TIN portal or any tax office.
Ready to File Your Tax Return?
Tax season can be stress-free! If you have questions or need tax advisory, contact a tax consultant. Stay informed, file early, and stay compliant!
For more details, visit the FIRS official website or your State IRS portal.
Sources:
- FIRS Filing Guide
- LIRS Taxpayer Resources
- Remita Payment
- Nigerian Personal Income Tax Act