A Publication of the

Federal Inland Revenue Service

For all Enquiries & Complaints, Please contact:
Customer Service Desk of the nearest Tax Office
Or
Taxpayer Service Department (TPSD)
20, Sokode Crescent, Wuse Zone 5, Abuja
tps@[Link]
[Link]@[Link]
+234(0)8115902227, +234(0)8115902218
[Link]

Disclamer:
MAKING
This information is provided FREE for guidance and is subject
to changes as and when the laws and policies are changed
TAX PAYMENT
2016
EASY
1. Introduc on
This document is intended to guide
taxpayers and the general public on the
Self-Assessment Regime. The
Government of Nigeria introduced a
system of tax administra on called Self-
Assessment Regime as a modern prac ce
of paying tax. It encourages taxpayers to
assess themselves and pay their tax
liabili es voluntarily. The regime is based
on the fact that taxpayers have the best
informa on about their own ac vi es
and hence are in the best posi on to
assess their own tax liabili es.

2. Self-Assessment
Self-assessment is a method whereby a taxpayer is required to correctly compute own tax
liability, properly complete the tax return, pay the self-assessed tax and submit the tax
returns together with the accompanying documents on or before the due date according to
the relevant tax law.

3. Objec ves of the Self-Assessment Regime

The main objec ves of the Self-Assessment Regime are:

to make payment of tax easy by enabling taxpayers to assess themselves and pay a fair
tax according to their business ac vi es.
to test the honesty and integrity of the taxpayer
to build trust in the taxpayer
to make the Tax Administra on System friendly and more efficient through:
easing the process of paying tax;
reducing the pressure on taxpayers by Tax Authori es;
minimising tax disputes between taxpayers and Tax Authori es;
focusing more on suppor ng taxpayers to comply voluntarily.
ensuring steady inflow of revenue to the government without wai ng ll when
revenue authori es reach every taxpayer.

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4. Advantages of the Self-Assessment Regime
Ÿ The Self-Assessment Regime helps the taxpayer to manage his tax affairs and be
fully accountable without being forced.
Ÿ A tax return filed by a taxpayer under the Self-Assessment Regime is deemed to
be an assessment in its own right by law and, therefore, will be accepted subject
to verifica on of completeness.
Ÿ The system aims at promo ng voluntary compliance by making it easy for a
taxpayer to pay tax.
Ÿ Taxpayers under this regime are exempted from provisional tax payment.

5. Self-Assessment Return Forms

The Self Assessment return forms are available free of charge at every TAX OFFICE of the
FIRS for the following tax types:
Ÿ Personal Income Tax (PIT)
Ÿ Companies Income Tax (CIT)
Ÿ Value Added Tax (VAT);
Ÿ Any other taxes not specified above.

6. Due Dates for Filing Self Assessment Tax Returns

Personal Income Tax (PIT) : returns filed and tax paid by self employed individuals
on or before 31st day of March of every year.
Companies Income Tax (CIT):
for old companies :- within six (6) months from the end of the accoun ng year.
for new companies :- within eighteen (18) months from the date of
incorpora on or not later than six (6) months a er the end of its accoun ng
period, whichever is earlier.
Petroleum Profits Tax (PPT) :
Filing a return of es mated tax for an accoun ng period is within two (2)
months a er the commencement of each accoun ng period;
Commencing the installment payment is not later than the third month of the
accoun ng period;
Filing a final return is within five (5) months a er the end of the accoun ng
period accompanied with the evidence of payment of the final installment.

Self Assessment is a trust

Do not betray it
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 Value Added Tax (VAT): filing returns and paying VAT due of the preceding month is on or
before the 21st day following the month of transac on.

Pay-As-You-Earn (PAYE):
Paying the tax deducted at source with an accompanying return showing the total
emoluments and total tax deducted from each employee within ten (10) days of the end of
every month.

Filing an annual return regarding each employee not later than 31st January of every year.

The term 'Due Date' refers to the last date of the period given by law to a taxpayer to file a specific
tax return and/or pay the related tax.

7. Finality of a Self-Assessment Return

Under the Self-Assessment Regime, the return filed by a taxpayer is accepted in the first
instance as an assessment in its own right and it could be final.
However, the returns will normally be subject to risk checks and those iden fied
with revenue risks will be scru nised and followed up.

8. Administra ve Assessment
Administra ve Assessment is a method whereby the tax authority assesses a taxable
person or en ty to tax using available informa on or third party sources, or trend /ra o
analysis to raise such assessment and serves such on the taxpayer, specifying the tax
payable and due date. Administra ve assessment arises when:

Ÿ A taxpayer has failed to file a return and pay tax due on or before the due date or
Ÿ The Tax Authority has established that there is an understatement of tax in the
return filed by a taxpayer.

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9. Taxpayer Obliga ons under the Self-Assessment Regime
a) Registra on
The registra on requirement applies to persons under the various tax laws.
Registra on involves;
Obtaining an applica on form for registra on from FIRS Tax Office responsible
for the area of opera on of the business ac vity
Comple ng the form correctly with all required informa on
Submi ng the completed applica on form with all required iden fica on
documents to the relevant Tax Office of FIRS
Obtaining a Taxpayer Iden fica on Number (TIN).
The registra on process and the TIN are FREE

b) Maintenance of business records

To facilitate voluntary compliance and submission of correct tax returns, every
taxpayer is required to keep proper business records which reflect a true and fair view
of the business at all mes.

Generally, business records include transac ons rela ng to:

Ÿ Sales and purchases of goods and services for profit
Ÿ Purchases/acquisi on and sales/disposal of fixed assets
Ÿ Expenditures on day-to-day running and expansion of business
Ÿ Addi onal capital into the business

Ÿ Personal drawings (cash and

goods in-kind withdrawal
from business for private
use)
Ÿ Loans to and from the
business
Ÿ Books of Accounts, which are
part of documents to
accompany tax returns, are
prepared from properly
maintained business records
Ÿ Bank Statements
Ÿ File of invoices and receipts

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c) Voluntary disclosure
Every taxpayer is required by law to make voluntary disclosure of transac ons for a given
period under the relevant tax law. Voluntary disclosure involves making correct:
Ÿ declara on of all relevant informa on as required in the tax return form
Ÿ computa on of capital allowance
Ÿ computa on of the tax liability by applying the correct rate(s) of tax.
d) Comple on and Signing of Tax Returns
Tax Return Forms should be duly completed and signed by the taxpayer even in case where a
tax agent/consultant has been engaged by a taxpayer for the purpose of filing tax returns:
Ÿ In the case of tax returns filed by individuals, the form must be signed by the taxpayer in
person
Ÿ In the case of tax returns filed by Companies, the form must be signed by:
i. The Chairman or Managing Director of the Company and
ii. The Company Secretary

e) Payment of Tax
Every taxpayer is required to pay the relevant taxes to FIRS through the collec ng banks by:
Ÿ properly comple ng the deposit slip available at the banks
Ÿ accompanying the deposit slip with the amount of tax to be paid and presen ng the slip and
amount to the bank
Ÿ receiving an e- cket from the bank as evidence of the tax paid

Ÿ confirming from the e- cket that the tax was paid into the appropriate tax account (eg. VAT
or CIT, etc)

f) Filing Tax Returns

A taxpayer is required to voluntarily file the tax returns to FIRS in a manner prescribed by the
relevant tax law.
A taxpayer should collect the relevant tax form from the Tax Office of FIRS, properly
complete the form and accompany it with the following documents:
Audited Accounts
Tax computa on
Capital Allowance computa on
Schedule of fixed assets
Evidence of tax payment of the whole or part of the tax into a collec ng bank
i.e E- cket issued by a collec ng bank
Any other document(s) as may be specified
Submit the completed form to the Tax Office on or before the specified due date

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(g) Tax Audit
Tax audit exercise is usually carried out periodically to compliment and support the self
assessment regime.

Taxpayers are required during tax audit exercise to:

Cooperate with Iden fied FIRS officers assigned to carry out the tax audit
Provide all or relevant books of records or documents requested by the tax
auditors

10. Condi ons and Responsibili es of Taxpayer and Agents

Ÿ A taxpayer may exercise his right to engage the service of an Agent (consultant) to file tax
returns on behalf of the taxpayer. In such a case, the taxpayer is required to no fy FIRS in
wri ng of such appointment.
Ÿ The Agent should, however, sa sfy the necessary requirements in order to be accepted
by FIRS to represent the taxpayer. In par cular, the Agent must be tax compliant i.e.
fulfilling own obliga ons under the relevant tax laws, rules and regula ons.
Ÿ Taxpayers should also note that:
Agents are NOT authorized to sign tax return forms of the taxpayers they represent
Agents should not be Staff or Employees of the Tax Authority

11. Du es of FIRS under the Self-Assessment Regime

The primary duty of the FIRS is to provide the appropriate service and support to taxpayers
to fulfil their obliga ons.
FIRS will therefore ensure:
Efficient service delivery
Simplified informa on on tax ma ers
Professional guidance
Simplified compliance procedures
Transparency
Prompt a en on to enquiries and complaints
Fair and equitable treatment
Promo on and support of voluntary compliance

Self Assessment is based on mutual

trust and commitment to fulfill our
duties and responsibilities

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 12. Consequences of non-compliance under Self-Assessment
A taxpayer who fails to comply with the provisions of the tax laws commits offences for which
the taxpayer is liable to various sanc ons such as fines, penal es, interest and imprisonment.
Offences amongst others include;

Ÿ failure to register for tax purposes

Ÿ failure to keep proper business records

Ÿ failure to file tax returns and pay tax on or before the due date

Ÿ understatement of tax in a return

Ÿ failure to produce such records or informa on as may be required by the Tax Authority

NOTE:
For further details on requirements and steps for filing
tax returns and consequences of not filing, you are
advised to read the Taxpayer Guide on “FILING TAX
RETURNS” issued by FIRS.

13. Conclusion
The Self-Assessment regime is based on mutual trust and commitment to fulfil our du es
and responsibili es as taxpayers. FIRS is commi ed to ensuring that taxpayers are provided
with effec ve, efficient and technical guidance in order to foster con nuous partnership
and achieve voluntary compliance.

...it pays to pay your tax