Question 1

When does Nigeria's tax year start?

Accepted Answer

Nigeria's tax year follows the calendar year, starting on January 1st and ending on December 31st each year. This applies to individuals, freelancers, sole proprietors, and most businesses, unless a company has received FIRS approval to adopt a different accounting year.

Question 2

What is the tax rate for 2026?

Accepted Answer

From January 1, 2026, the Nigeria Tax Act 2025 introduces the following individual income tax rates (after reliefs): First ₦800K: 0%, Next ₦2.2M: 15%, Next ₦9M: 18%, Next ₦13M: 21%, Next ₦25M: 23%, Above ₦50M: 25%. For companies: Turnover ≤ ₦25 million → 0%, Turnover > ₦25 million → 30%. A 4% Development Levy also applies to larger companies.

Question 3

What is a tax return?

Accepted Answer

A tax return is an official statement you submit to the tax authorities (FIRS or your State Internal Revenue Service) showing your total income, allowable expenses, and taxes owed or already paid for a specific tax year. It helps determine whether you've paid the correct amount of tax, you're due a refund or you need to pay additional tax. Individuals (including freelancers and sole proprietors) are expected to file their annual tax return by March 31st of the following year.

Question 4

Who needs to file a tax return in Nigeria?

Accepted Answer

The following individuals and businesses are required to file a tax return each year: Employees earning more than the national minimum wage, Freelancers, self-employed persons, traders, artisans and sole proprietors, People earning from abroad but residing in Nigeria, Business owners, Landlords, agents or property sellers who earned rental income or capital gains, Gig workers and digital service providers, Companies and NGOs, regardless of profit or loss.

Question 5

What documents do I need to file my tax return in Nigeria?

Accepted Answer

For Individuals, Freelancers & Sole Proprietors: Valid Tax Identification Number (TIN), Proof of income, Record of business or freelance earnings, Details of allowable expenses, Evidence of taxes already deducted, National Identification Number (NIN), BVN. For Registered Companies: CAC documents, Audited financial statements, Evidence of VAT and WHT payments, Staff PAYE records, Company TIN.

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