How to File Your Tax Returns in Nigeria Step by Step Guide

Filing tax returns in Nigeria ensures you comply with the law and avoid penalties. Under the 2026 tax reforms, every income earner must register and file annually, even if exempt. The Federal Inland Revenue Service (FIRS), soon to be Nigeria Revenue Service, oversees company taxes, while State Internal Revenue Services handle personal income tax for individuals.

This guide walks you through the process for personal income tax, focusing on self-assessment for employees, freelancers, and self-employed Nigerians. Expect to spend 30-60 minutes online once prepared.

Prepare mentally: Tax filing builds financial discipline. Start early to dodge last-minute rushes. Gather your Bank Verification Number (BVN), valid ID, proof of income like payslips or invoices, and expense receipts for deductions. Deductions include pension contributions, life insurance premiums, and rent. The exemption threshold stands at ₦800,000 annual income below this, file a nil return.

Understand Tax Types in Nigeria

Identify your tax obligations first. Individuals pay Personal Income Tax (PIT) based on earnings. Businesses handle Company Income Tax (CIT), Value Added Tax (VAT), and Withholding Tax. Check if you qualify for exemptions or reliefs under the Federal Inland Revenue Service (FIRS) rules. Review your income sources, such as salary, business profits, or investments, to determine applicable taxes.

Gather necessary documents early. For Personal Income Tax PIT, collect your Tax Identification Number (TIN), pay slips, bank statements, and expense receipts. Businesses need audited financial statements, VAT returns, and proof of withholdings. Use the FIRS website to verify requirements specific to your category.

Who Should File Tax Returns in Nigeria

Every income earner in Nigeria must file tax returns. This includes salaried employees, business owners, freelancers, contractors, partnerships, and registered companies. Even if no income was earned during the year, filing a nil return is mandatory.

Failure to file can result in fines, interest charges, and possible legal action.

Step by Step Guide to File Tax Returns in Nigeria

Step 1 Register With the Relevant Tax Authority

To file tax returns in Nigeria, you must register with the appropriate tax authority. Individuals register with their State Internal Revenue Service, while companies register with the Federal Inland Revenue Service.

During registration, you will receive a Tax Identification Number. This number is mandatory for all tax filings and financial transactions.

Step 2 Obtain Your Tax Identification Number TIN

A Tax Identification Number uniquely identifies you as a taxpayer in Nigeria. You can apply for a TIN through the Joint Tax Board portal or directly at a tax office.

Ensure your personal or business details are accurate, as errors can delay your tax filings.

Step 3 Gather Required Documents

Before filing, organize all relevant financial records. These typically include income statements, bank statements, expense receipts, payroll records, and previous tax returns.

Accurate documentation ensures correct tax calculations and reduces the risk of audits or penalties.

Step 4 Calculate Your Taxable Income

Determine your total income for the tax year and subtract allowable reliefs and deductions. These may include pension contributions, National Housing Fund payments, and approved business expenses.

Correct calculation helps you avoid underpayment or overpayment of taxes.

Step 5 File Tax Returns Online Using FIRS e Filing

The Federal Inland Revenue Service provides an e filing platform that allows taxpayers to submit returns online. Log in using your TIN, complete the required forms, and upload supporting documents.

E filing is faster, more secure, and provides instant confirmation of submission.

Step 6 Pay Your Taxes and Obtain Evidence of Payment

After filing, pay the assessed tax through approved banks or online payment channels. Always obtain and keep your payment receipt.

Proof of payment is essential for compliance verification and future transactions.

Step 7 Submit Annual Returns and Confirmation

Once payment is complete, submit your final annual tax return and confirmation documents to the tax authority. This confirms full compliance for the tax year.

Keep copies of all submissions for record keeping.

Calculate Your Taxable Income

Assess your gross income accurately. Deduct allowable expenses, such as business costs or pension contributions, to find taxable income. Use FIRS-approved rates for depreciation on assets.

For individuals, apply the progressive tax bands: 7% on the first N300,000, up to 24% on amounts over N3.2 million. Businesses pay 30% CIT on profits. Factor in minimum tax if applicable, at 0.5% of gross turnover for companies with low profits.

Employ tax calculators on the FIRS site for precision. Consult a tax professional if your situation involves complex deductions like capital allowances.

Prepare Your Tax Return Forms

Download the appropriate forms from the FIRS e-services portal. Individuals use Form A for PIT. Companies submit Form CIT001 for income tax.

Fill in details meticulously. Enter income figures, deductions, and tax computations. Attach supporting schedules for breakdowns. Ensure all entries match your records to prevent audits.

For electronic filing, scan documents in PDF format. Double-check for errors before proceeding.

File Your Tax Returns Online

Access the FIRS e-filing platform. Log in with your TIN and password. If new, create an account first.

Upload your completed forms and attachments. The system validates entries automatically. Pay any outstanding tax via integrated payment gateways like Remita or bank transfers.

Submit the return electronically. Receive an acknowledgment receipt via email. Filing deadlines vary: March 31 for PIT, six months after fiscal year-end for CIT.

Handle Payments and Refunds

Settle dues promptly to avoid interest charges at 10% per annum. Use approved channels for payments. If overpaid, apply for refunds through the portal. Provide bank details for direct transfers. FIRS processes refunds within 90 days, subject to verification.

Track your status online. Respond quickly to any queries from tax authorities.

Avoid Common Pitfalls in Tax Filing

Steer clear of underreporting income, which triggers penalties up to 10% plus interest. File on time to evade late fees of N25,000 for individuals or N500,000 for companies.

Maintain records for at least six years. Update your profile for changes like address or income sources.

Seek help from certified accountants if unsure. Join FIRS webinars for updates on tax laws.

Benefits of Timely Tax Compliance

Filing correctly builds your credit profile for loans. It qualifies you for government incentives like tax holidays for pioneers. Contribute to Nigeria's economy while securing peace of mind. Compliant taxpayers enjoy faster processing in future dealings.