- By Samuel Oamen
With the March 31 deadline just hours away, many taxpayers in Nigeria are still uncertain about who is required to file personal income tax returns and comply with legal obligations.
Under the Nigeria Tax Act 2025, every individual earning income in the country is expected to file an annual tax return covering earnings from the previous year, regardless of how the income is earned.
Below is a full breakdown of those required to file:
1. Self-Employed Individuals
This category is mandated by law to file tax returns. It includes:
Business owners
Entrepreneurs
Freelancers
Traders and artisans
Consultants
They are responsible for declaring their income and calculating their taxes.
2. Individuals With Multiple Sources of Income
Anyone who earns beyond a single salary must file, including those with:
Rental income
Side businesses or freelance work
Dividends and investment income
Foreign income
3. Salaried Employees (PAYE Earners)
Although taxes are deducted at source under the Pay-As-You-Earn system, filing may still be required or advisable, especially for:
Record purposes
Verification of tax deductions
Obtaining a Tax Clearance Certificate (TCC)
Many state tax authorities still expect annual returns from employees.
4. People Who Changed Jobs Within the Year
Individuals who worked with more than one employer in a tax year are expected to file returns to properly account for total earnings.
5. Professionals in Private Practice
This includes:
Lawyers
Doctors
Engineers
Accountants
Anyone offering professional services independently must file their returns.
6. Business Partners and Company Directors
Individuals earning income through partnerships, directorships, or board positions are required to declare such earnings.
7. Individuals With Mixed Income Streams
Anyone combining salary with other earnings (e.g., salary + business or rent) must file to ensure accurate tax assessment.
8. High-Net-Worth Individuals
Those with significant or complex income sources, assets, or investments are expected to file detailed tax returns.
9. Individuals Seeking Tax Clearance Certificate (TCC)
Filing becomes necessary for those who need a TCC for:
Government contracts
Loan applications
Visa processing
Official financial transactions
10. Any Income Earner in Nigeria
As a general rule, any individual earning income in Nigeria is expected to file a tax return, in line with the provisions of the law.
Source: The Nation News