As the deadline for filing Annual Individual Personal Income Tax (PIT) Returns approaches on March 31, 2023, it is crucial to be well-informed and take the necessary steps to ensure compliance. According to Section 41 of the Personal Income Tax Act, 2011, Cap P8 LFN 2004 as amended, individuals are required to file their returns within ninety (90) days from the start of each year.
Here are six important aspects to consider for a smooth PIT filing process:
- Understanding PIT Returns Filing: PIT Returns encompass reporting all income earned in the preceding calendar year and must be submitted to the State Internal Revenue Service (SIRS) where the taxpayer resides. For the 2023 filing season, income earned from January 1, 2022, to December 31, 2022, should be filed with the relevant tax authorities (RTA).
- Distinguishing PIT Returns Filing from PIT Remittance: Filing PIT Returns is distinct from remitting PIT. Filing involves providing the tax authority with comprehensive information about 2022 income, including details on tax reliefs, deductions, exemptions, and credits, as well as any PIT already paid.
- Deadline for Filing 2022 PIT Returns: The deadline for filing 2022 PIT Returns is Friday, March 31, 2023, as stipulated in Section 41(3) of the Personal Income Tax Act. Taxable individuals must submit their returns within ninety (90) days from the beginning of the assessment year.
- Contents of the Filed Returns: The required filing is a self-assessment report covering all types of income (employment and other incomes) earned during the 2022 calendar year.
- Mandatory Filing for Specific Categories: While the law mandates everyone to file PIT Returns, the SIRS administratively requires certain groups to file. This includes high net-worth individuals (HNIs) who may receive a filing request from the SIRS. Additionally, individuals earning other incomes outside of employment, such as directors’ fees, rental income, dividends, and interests, as well as self-employed individuals, must file separately.
- Filing Procedures: The filing process varies across states. While some states require physical submission of PIT Returns, others have embraced automation. States like Lagos, Rivers, Anambra, Imo, Enugu, Bayelsa, Kogi, Osun, Cross River, Kwara, and Ogun have adopted electronic filing methods. It is important to note that accessing these services may require a Taxpayer Identification Number (Payer ID), which individuals can obtain from specific state IRS offices. Please let us know if you are still without a Payer ID or Taxpayer Identification number.
For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.
