PAYROLL TAX RETURNS IN NIGERIA

It’s the season for filing the annual payroll tax returns (Form H1) in Nigeria.

Here is a reminder to file the Form H1 returns which is 11 days away! plus extra tips

The Personal Income Tax Act (PITA) Cap P8 LFN 2011 (as amended) requires every employer to file the employer tax returns
(Form H1) with the relevant tax authority by 31 January.

Employers are to file their annual returns for the 2021 tax year relating to employee(s) income and PAYE taxes from January 2021 to December 2021.

The PAYE taxes calculation should follow the rules of the Finance Act 2020, effective 1 January 2021.

Each State Internal Revenue Service has its prescribed format for filing the employer tax returns. Submission can be electronic or hard copy returns. States like Lagos and Rivers have a dedicated portal for Form H1 returns. First-time users will register to access the portal.

The due date for filing the 2021 Form H1 tax returns is 31 January 2022. Late filing penalty is NGN500,000 for companies and NGN50,000 for individuals.

You can calculate PAYE taxes based on Finance Act 2020 or see the FAQs on employer tax returns in Nigeria.

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