Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has reminded Nigerians that both individuals and employers are legally required to file their annual tax returns on or before March 31 each year.
Oyedele made the call during a webinar organised for HR managers, payroll officers, chief financial officers and tax managers, in collaboration with the Joint Revenue Board.
Speaking during the session, which was posted on YouTube on Friday, Oyedele lamented widespread non-compliance with tax filing obligations, particularly among individual taxpayers.
He explained that employers are required to file annual tax returns for their employees, including projections of staff remuneration.
“In terms of filing returns, you need to file annual returns as employers for your employees. Many of you must have done that already. If you haven’t, you have just a couple of days left to file those returns, including projections of how much you will pay your staff,” he said.
Oyedele added that individuals are also mandated by law to file self-assessment returns, stressing that compliance remains extremely low across the country.
“This is one area where we have been non-compliant in Nigeria. In many states, more than 90 per cent— even the most sophisticated states—cannot boast of five per cent filing returns,” he noted.
He cautioned employees against assuming that their tax obligations end once their employers deduct Pay-As-You-Earn (PAYE) from their salaries.
“Many people assume that if they are an employee and the employer has deducted tax, they don’t have to do anything. That is wrong. Both under the old and new tax laws, you must still file your returns,” Oyedele said.
The tax policy expert assured Nigerians that efforts are underway to simplify the filing process through collaboration among tax authorities.
“I’m sure the tax authorities, the Joint Revenue Board and various state internal revenue services are working on how to make this process simpler and easier. All of us must file our returns, including those earning low income. You must file returns by 31st March of the year in respect of the previous fiscal year,” he stated.
Oyedele also disclosed that under the new tax laws, businesses benefiting from tax incentives are now required to disclose such incentives when filing their returns.
“Under the new tax law, if you operate a business as an enterprise and you enjoy certain incentives, you have the obligation to disclose those incentives. There is now a disclosure requirement for tax incentives when filing tax returns or shortly after,” he added.
