As we enter the Annual Personal Income Tax (PIT) Returns filing season, it’s important to note the approaching deadline of March 31, 2024, as required by Section 41 of the Personal Income Tax Act, 2011. This guide is designed to provide you with all the necessary information to ensure compliance and avoid potential penalties.
Understanding PIT Returns Filing
This process entails the meticulous documentation of all income accrued in the preceding calendar year, covering the period from January 1, 2023, to December 31, 2023. The filing is directed to the State Internal Revenue Service (SIRS) corresponding to the taxpayer’s residence.
Deadline for 2023 PIT Returns
Adhering to Section 41(3) of PITA, the deadline for filing is set at March 31, 2024, necessitating compliance within ninety (90) days from the commencement of every year.
Who is Required to File?
While the law requires everyone to file their PIT Returns (regardless of whether their employers volunteered their information in the annual PAYE Returns filing process due earlier on January 31, 2024), currently the SIRS for administrative reasons mandatorily requires the following categories of persons to file PIT Returns:
- Persons that are considers to be high net-worth individuals (HNIs). Typically, the SIRS will write to these persons and require them to file their PIT Returns. Accordingly, it is no defense to any of the persons in your organization to claim that since their details were part of your PAYE Returns, they do not need to file their PIT Returns, especially if they receive a letter from the SIRS. Recall that we had mentioned that, by law, everyone is actually required to file their PIT Returns. Thus, any person who receives a filing request from their SIRS or should file his or her PIT Returns.
- Persons who earn other incomes outside of their employment income: Such other incomes include directors’ fees, rental income, dividends, interests et.al. Anyone in this category is required to separately file his or her PIT Returns, declaring the total income earned for the period.
- Self-employed persons: These pertains to persons who are not under an employment but run a business of their own.
How is the Filing to be Done?
While the IRS of most States requires individuals to submit their PIT Returns physically with them, some have proceeded to automate the process. States such as Lagos, Rivers, Anambra, Imo, Enugu, Bayelsa, Kogi, Osun, Cross River, Kwara and Ogun, have adopted the electronic means of filing PIT Returns. Please note that you require a Taxpayer Identification Number (Payer ID) to assess these services from the Lagos, Rivers, Anambra, Imo, Enugu, and Ogun State IRS in which case, you can please let us know if you are still without a Payer ID or Taxpayer Identification number.
What can Taxaide Do?
At Taxaide, we manage the tax affairs of HNIs and persons who require us to privately manage their PIT accounts and compliances with their relevant tax authorities. This category includes entrepreneurs, C-suite executives, expatriates, et.al. We are accordingly able to, on individual levels, advise and assist these taxpayers with their tax compliances and tax authority engagements.
As at today, our operations extend to all States in Nigeria, including the Federal Capital Territory. We also assist Clients with dual/multiple tax residencies (that is, who in addition to Nigeria, maintain tax residence in other jurisdictions) to manage their Nigerian tax obligations, taking full benefit of the tax rebate options afforded them by law. At the heart of all our tax services, is to ensure that our clients sustainably minimize their tax payouts while ensuring optimal compliance.
Please reach out to us or refer any of your HNIs or other interested persons to our PIT Management service. Thank you.
For more information on Personal Income Tax Returns Filing and all tax-related issues, please do not hesitate to contact us at:
Tel: +234 700 TAXAIDE (0700 829 2433), +234 1 631 0971
WhatsApp: +234 810 701 7274
