The Personal Income Tax Act (PITA) Cap P8 LFN 2004 (as amended) provides that every employer is statutorily required to submit its employers’ tax returns (Form H1) with the relevant tax authority. The Form H1 is a declaration of the total emoluments paid to employees in the preceding year.
The timeline for filing is on or before 31 January of every year. Please note that the penalty for non-filing is ₦500,000 in the case of a body corporate and ₦50,000 in the case of on an individual.
Employers are by this notice, reminded of their statutory obligation to file their 2019 annual returns with the relevant tax authority on or before the deadline date of 31 January 2020.
Also, a number of states in Nigeria have moved to e-filing while others have included a number of additional documents to be filed alongside the returns. Employers are therefore advised to get familiar with the process ahead of the deadline stated above.
Specifically, Lagos State Internal Revenue Service (LIRS) has introduced the e-tax portal whose function amongst other things are taxpayer ID generation & validation, upload of monthly PAYE tax remittance schedules, access to view tax statements, tax remittances and instant receipt generation, filing of tax returns etc. To this end, all individuals and employers are required to register or get validated on the portal. Deloitte is available to assist you with filing your employers’ annual returns. If you require further clarification or seek to understand how this would impact your business, please reach out to NGTaxPartners@deloitte.com