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𝗗𝗲𝗱𝘂𝗰𝘁𝗶𝗯𝗹𝗲 𝗗𝗼𝗻𝗮𝘁𝗶𝗼𝗻𝘀: 𝗪𝗵𝘆 𝗽𝗮𝘆 𝗺𝗼𝗿𝗲 𝘁𝗮𝘅 𝘄𝗵𝗲𝗻 𝘆𝗼𝘂 𝗰𝗮𝗻 𝗴𝗶𝘃𝗲 𝘁𝗼 𝗵𝘂𝗺𝗮𝗻𝗶𝘁𝘆 𝗶𝗻𝘀𝘁𝗲𝗮𝗱?

Corporate social responsibility isn’t just about impact, it can also reduce your tax.

Under the Nigeria Tax Act, donations to certain institutions are deductible from profits before tax, even when made in non-cash form.

𝗧𝗼 𝗾𝘂𝗮𝗹𝗶𝗳𝘆, 𝗱𝗼𝗻𝗮𝘁𝗶𝗼𝗻𝘀 𝗰𝗮𝗻 𝗯𝗲 𝗺𝗮𝗱𝗲 𝘁𝗼:

▪️ Charitable, religious, educational, and scientific institutions in Nigeria

▪️ Public emergency interventions (e.g., pandemics, disasters)

▪️ Public funds and statutory bodies & institutions

▪️ Diplomatically recognised organisations

𝗞𝗲𝘆 𝗽𝗼𝗶𝗻𝘁𝘀:

✅ Applies to companies only

✅ Does not apply to individuals and business names

✅ Deduction is capped at 10% of profit before tax

✅ Proper documentation must be provided

✅ Non-cash donations are valued at the lower of cost or market value

𝗪𝗼𝘂𝗹𝗱 𝘆𝗼𝘂 𝗿𝗮𝘁𝗵𝗲𝗿 𝗴𝗶𝘃𝗲 𝘁𝗼 𝗵𝘂𝗺𝗮𝗻𝗶𝘁𝘆 𝗼𝗿 𝗽𝗮𝘆 𝗺𝗼𝗿𝗲 𝘁𝗮𝘅?

Filing your Personal Income Tax (PIT) in Nigeria is a legal requirement that ensures individuals contribute their fair share to national development while avoiding penalties for non-compliance. Whether you’re a salaried employee, self-employed, or earning from multiple sources, understanding the filing process is crucial.

With the annual PIT filing deadline set for March 31st, this guide will walk you through everything you need to know—who needs to file, how to do it, and where to find the right resources for compliance.

Who Needs to Pay Personal Income Tax in Nigeria?
In Nigeria, every taxable individual is required to file their Personal Income Tax returns, but not everyone needs to make additional tax payments. Here’s how it works:

Employees under PAYE: If you work for an employer, your taxes are likely already deducted monthly through the Pay-As-You-Earn (PAYE) system and remitted on your behalf. However, you’re still required to file your annual tax returns to confirm compliance. You won’t need to make additional payments unless you have other income sources.
Calculate your PAYE with our free payroll calculator

Self-employed individuals, freelancers, and business owners: Since you don’t have an employer deducting taxes for you, you must calculate and pay your taxes yourself before filing.
Individuals with additional income streams: If you earn from side businesses, rental properties, investments, or freelance work, you must declare all income sources and pay any outstanding tax obligations.
Step-by-Step Guide to Filing Your Personal Income Tax in Nigeria

Step 1: Determine Your Tax Residency
Resident taxpayers: If you live and earn in Nigeria for at least 183 days in a year, you’re required to pay PIT to the tax authority of your state of residence.
Non-resident taxpayers: If you earn income from Nigeria but reside elsewhere, you may still have tax obligations.

Step 2: Calculate Your Taxable Income
Your taxable income includes:

Salaries, wages, bonuses, and allowances
Profits from business or freelancing
Rental income from properties
Investment returns (dividends, interest, etc.)
Tax Rates for Individuals in Nigeria

Personal Income Tax is calculated on a graduated scale as follows:

Annual Income (₦)

Tax Rate (%) 2025 returns

First ₦300,000 7%

Next ₦300,000 11%

Next ₦500,000 15%

Next ₦500,000 19%

Next ₦1,600,000 21%

Above ₦3,200,000 24%

Minimum wage:

Individuals with gross income less than or equal to the minimum wage (currently ₦70,000 on a monthly basis), are not required to comply with personal income tax remittance. However, such individuals are not exempted from PIT filing.

Step 3: Pay Your Taxes
Once your tax liability is calculated, payments can be made via:

Online payment portals of state tax agencies
Bank deposits (using state IRS payment codes)
Remita or state-specific revenue collection systems

Step 4: Prepare and File Your Annual Tax Return
By law, individuals must file their annual tax returns on or before March 31st every year. To do this:

Gather necessary documents:

Payslips or financial statements
Bank statements showing business income
Rental agreements (if applicable)
Investment statements
File your PIT returns through:

E-filing platforms of state IRS
Physical submission at the State IRS office
Download the Taxpayer Self-Assessment Form (Form A) from your state’s IRS website and complete the form with details of your income, allowable deductions, and reliefs.

Step 5: Obtain Your Tax Clearance Certificate (TCC)
A Tax Clearance Certificate (TCC) is proof that you’ve paid your taxes. It is required for:

Business registration and government contracts
Visa applications
Loan approvals
Property transactions

State-Specific PIT Filing Platforms
Each Nigerian state has its own Internal Revenue Service (IRS) that handles Personal Income Tax. Below are the official IRS websites for all 36 states and the FCT where you can file your taxes:

State IRS Website

Abia State

abiairs.gov.ng

Adamawa State

adamawatax.ng

Akwa Ibom State Ibom tax.net

Anambra State

airsan.gov.ng

Bauchi State

birs.bu.gov.ng

Bayelsa State

bayelsatax.gov.ng

Benue State

birs.benuestate.gov.ng

Borno State

birs.borno.gov.ng

Cross River State

crirs.crossriverstate.gov.ng

Delta State

deltabirs.gov.ng

Ebonyi State

ebirs.gov.ng

Edo State

edo-birs.org

Ekiti State

ekitistaterevenue.com

Enugu State

ensbirs.org

Gombe State

girs.gov.ng

Imo State

imostateirs.gov.ng

Kaduna State

kdsgirs.gov.ng

Kano State

kanobirs.com

Lagos State

etax.lirs.net

Ogun State

ogunstateirs.com

Rivers State

riversbirs.gov.ng

FCT (Abuja)

fctirs.gov.ng

Conclusion
Filing your Personal Income Tax (PIT) is not just a legal obligation it’s also crucial for accessing financial and business benefits. By following this step-by-step guide, you can stay compliant, avoid penalties, and contribute to national development.

Don’t wait until the last minute! File your PIT before March 31st to stay compliant. Bookmark this guide & share it with others to help them stay tax-compliant in Nigeria.

Register your business today.

We assist with:

• Business & Company Registration
• Annual Returns Filing
• Church Registration
• Tax Filing & Compliance
• Monthly PAYE Returns & Remittance

Reliable service. Fast processing. No stress.

Send a message today and let’s get it done.

08151417134

Contact us for any of this services👇

1.Financial Statement Audit for Tax and Loan
‎
‎2. Tax filing on Tax Promax

3. PAYE Returns and Remittance

4. Payroll management

6. Inventory Count

7. Forensic Audit and Report

8. CAC Annual Returns

9. Company and Business Registration with CAC

10. Trademark Registration

11. SCUML Registration

12. Tax ID/ TIN Registration

13. NIN slip Reprinting

14. Affidavit

15. Financial Statement Analysis and Preparation.