As an indispensable facet of tax compliance, the Annual Pay-As-You-Earn (PAYE) returns in Nigeria are mandated for every employer. Understanding the intricacies of this filing process is paramount to ensure adherence to tax laws and regulations set forth by the Federal Inland Revenue Service (FIRS) and State Internal Revenue Service (SIRS). This comprehensive guide aims to illuminate the landscape of Annual PAYE Returns, providing essential insights crucial for employers across Nigeria.
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Nigeria’s Federal Inland Revenue Service (FIRS) has updated the Value Added Tax (VAT) compliance processes on its ICT-based tax compliance platform, the TaxPro MAX (the Platform). The updated processes are on Sales, Purchases, Sales Adjustments, and the VAT Returns Form. We provide below, 15 key notes on the changes on the Platform and their implications for your VAT compliance process, going forward:
Read MoreThe deadline to pay your 2022 training contributions and file your training policy with the office of the Industrial Training Fund (ITF or “the fund”) is fast approaching. Many businesses are exposed to penalties for non-compliance due to the lack of information on the functionality and operations of the ITF. This article provides detailed information on how the fund operates and functions to ensure that your business is fully compliant and, at the same time, reaps the benefits that are available.
Read MoreIn Nigeria, the Personal Income Tax Act (PITA) is the principal legislation that governs the taxation of individuals, communities, families, trustees, and estates. The PITA imposes a tax on the total income of taxable persons subject to a few exemptions which may be found under the Third Schedule to the PITA (Third Schedule), Items One and Two of the Sixth Schedule to the PITA, or under any other relevant provision of the PITA such as Sections 19 & 20.
Read MoreThe Annual Individual Personal Income Tax (PIT) Returns filing season is upon us and the due date which falls on March 31, 2023 is fast approaching. This in line with Section 41 of the Personal Income Tax Act, 2011, Cap P8 LFN 2004 as amended, which states that a taxable person shall, without notice or demand, file a return of the income in the prescribed form and containing the prescribed information with the tax authority of the State in which they reside, within ninety (90) days from the commencement of every year.
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Filing of PAYE for employers of labour is a seasonal exercise. It comes in the first month of every year. Employers of labour are mandated by section 81 of the Personal Income Tax Act (PITA) to file annual returns which contains the income paid to their employees, PAYE deducted and remitted to the relevant tax authorities on behalf of the employees in an assessment year. In this piece we would review the PAYE returns filing process as this is what is required first before the PIT filing returns.
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Introduction:
Base Erosion and Profit Shifting (BEPS) actions were developed in the context of the Organisation for Economic Cooperation and Development (OECD) /G20 BEPS Project. The 15 BEPS actions equip governments with domestic and international rules and instruments to address tax avoidance, ensuring that profits are taxed where economic activities generating the profits are performed and where value is created.
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Introduction:
The Fiscal Policy Reforms Committee (FPRC) while acting under the directive of the Minister of Finance has annually updated the Finance Act to respond to changing realities in the economy in order to actualize a major objective of the National Tax Policy, 2017, which is to cautiously create a flexible and dynamic fiscal atmosphere that perpetually accommodates changing economic circumstances without resulting in a volatile tax system that unsettles economic activities.
Read MoreIntroduction:
The steadily plummeting revenue accruing to the Government annually has led to the need to diversify the country’s revenue generation portfolio by exploring prospects of non-crude-oil-related revenue generating activities and undertaking thorough well-thought-out measures to block revenue leakages in the economy. Hence, the attempts being made to tighten the country’s fiscal policy measures and to fish out non-conforming taxpayers.
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