Taiwo Oyedele: All Nigerians must file tax returns by March 31 despite PAYE deduction

By Abubakar Yunusa

Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, says taxpayers in Nigeria must file their annual tax returns by March 31 each year, regardless of income level or whether PAYE has already been deducted.
PAYE (pay as you earn) is an income tax system in which employers deduct tax directly from workers’ salaries and remit to the government.
Oyedele spoke during a recent webinar organised in collaboration with the Joint Revenue Board (JRB).
The session, which engaged human resource managers, payroll officers, chief financial officers, and tax managers, was posted on his YouTube channel on Friday.
Speaking at the virtual event, the chairman said employers are statutorily required to file annual tax returns on behalf of their employees, including projections of staff remuneration for the year.
“In terms of filing returns, you need to file annual returns as employers for your employees. Many of you must have done that already,” Oyedele said.
“If you haven’t, you have just a couple of days left to file those returns, including projections of how much you will pay your staff.
“This is one area where we have been non-compliant in Nigeria. In many states, more than 90 percent, even the most sophisticated states, cannot boast of 5 percent filing returns.”
He also dismissed the belief that employees whose PAYE taxes have been deducted are exempt from filing personal income tax returns.
The fiscal policy expert said the obligation applies to all taxpayers, including low-income earners, stressing that tax authorities are working to simplify the filing process.
“Many people assume that if they are an employee and the employer has deducted PAYE, they don’t have to do anything. That is wrong. Both under the old and new tax laws, you must still file your returns,” he said.
“I’m sure the tax authorities, joint revenue boards, and various state internal revenue services are working on how to make this process simpler and easier.
“All of us must file our returns, including those earning low income. You must file returns by 31st March of the year in respect of the previous fiscal year.”
On the new tax law, Oyedele said businesses that benefit from tax incentives are now required to disclose such incentives when filing their tax returns or shortly after.