Ah, tax can be a tricky topic, but don't worry, I'm here to help you understand it easily. As a salary earner who pays PAYE (Pay As You Earn), the tax is deducted from your payment every month. Now, the question is, do you still need to file your tax returns even though the tax is already being deduRead more
Ah, tax can be a tricky topic, but don’t worry, I’m here to help you understand it easily. As a salary earner who pays PAYE (Pay As You Earn), the tax is deducted from your payment every month. Now, the question is, do you still need to file your tax returns even though the tax is already being deducted monthly? Let’s break it down for you:
Simple Explanation:
Filing your tax returns means submitting a document to the government that shows how much money you earned and how much tax you’ve already paid.
How it Works:
Even though tax is being deducted from your salary monthly through PAYE, it’s still important to file your tax returns. This is because the government uses the information in your tax returns to calculate if you paid the correct amount of tax based on your total income and expenses for the year.
Benefits:
1. Claiming refunds: If you’ve overpaid your tax, you can get a refund by filing your tax returns.
2. Avoiding penalties: Filing your tax returns on time helps you avoid penalties and legal issues. 3. Updating information: You can update your personal details or claim deductions by filing your tax returns.
Risks:
1. Penalties: Failing to file your tax returns can lead to penalties and legal consequences. 2. Missed refunds: If you’re eligible for a tax refund but don’t file your returns, you might miss out on getting your money back.
Real-life Nigerian Example:
Imagine you’re a teacher who pays tax every month through PAYE. By filing your tax returns, you can claim deductions for expenses related to your profession, leading to a lower tax bill.
Common Mistakes:
1. Ignoring filing: Some people think they don’t need to file if tax is already deducted, but that’s not the case. 2. Incorrect information: Providing inaccurate details in your tax returns can lead to issues.
Practical Steps to Get Started:
1. Gather your income and expense documents.
2. Fill out the tax return form accurately. 3. Submit the form to the appropriate tax authority before the deadline.
Short Summary:
Even though tax is deducted from your salary monthly through PAYE, it’s essential to file your tax returns to ensure you’ve paid the correct amount of tax and potentially claim refunds or deductions. Don’t forget to file on time to avoid penalties and legal troubles.
Now, do you know where you can get the tax return forms to file your taxes?
An incorporated trustee such as a church in Nigeria is generally treated as a non-profit / not-for-profit organization, but that does not mean it is completely exempt from tax compliance. Under the Nigerian tax system, churches registered with the Corporate Affairs Commission as Incorporated TrusteeRead more
An incorporated trustee such as a church in Nigeria is generally treated as a non-profit / not-for-profit organization, but that does not mean it is completely exempt from tax compliance.
Under the Nigerian tax system, churches registered with the Corporate Affairs Commission as Incorporated Trustees are usually exempt from Companies Income Tax (CIT) on income used strictly for their religious and charitable objectives. However, they still have filing and compliance obligations with the Federal Inland Revenue Service and sometimes the State Internal Revenue Service.
Here is the practical breakdown:
1. Register for Tax Identification Number (TIN)
Even though the church is nonprofit, it should still obtain a TIN from:
Federal Inland Revenue Service
Or via CAC post-incorporation integration
You’ll typically need:
CAC certificate
Constitution/trust deed
Registered address
Trustee details
2. File Annual Returns With FIRS
Many churches misunderstand “tax exempt” to mean “no filing required.”
In reality:
The church may be exempt from paying CIT,
BUT it still needs to file annual tax returns/compliance documents.
Usually this involves:
Audited financial statements
Statement of affairs/income & expenditure
Tax exemption application or confirmation
Annual self-assessment filings
Failure to file can still attract penalties even where no tax is due.
3. PAYE Obligations (Very Important)
If the church has:
Pastors on salary,
Admin staff,
Security,
Musicians,
Drivers, etc.,
then the church must:
deduct PAYE,
remit to the State Internal Revenue Service,
file PAYE returns monthly/annually.
For example in Rivers State, this is handled by the state tax authority.
4. Withholding Tax (WHT)
The church may also need to deduct withholding tax on certain payments such as:
contractors,
consultants,
vendors,
rent,
professional services.
Example: If the church pays a contractor ₦1 million for renovation, WHT may need to be deducted and remitted.
5. VAT Position
Religious activities themselves are generally not VATable.
But VAT issues can arise if the church:
runs commercial businesses,
sells goods,
operates schools/bookshops/event centers commercially.
Pure tithes, offerings, and donations are not VATable.
6. Tax Exemption Is Conditional
Tax exemption can be lost if:
church funds are diverted for private benefit,
profits are distributed,
commercial activities dominate operations.
Commercial income not applied to charitable objectives may become taxable.
7. Annual CAC Returns Still Required
Separate from tax filing, Incorporated Trustees must also file annual returns with the:
Corporate Affairs Commission
Non-filing can eventually lead to penalties or delisting issues.
Recommended Practical Steps
Obtain/confirm TIN
Open proper accounting records
Prepare yearly financial statements
File annual returns with CAC
File tax compliance returns with FIRS
Register PAYE if staff are employed
Engage a small tax consultant/accountant familiar with nonprofits
You can also review:
firs.gov.ng
cac.gov.ng
Yes — you should still file. But… 👉 you will file what is called a NIL RETURN What Is NIL Return? It simply means: 👉 “I earned NO taxable income last year” Let Me Explain With a Simple Story Mama Ngozi didn’t sell tomatoes throughout 2025. At the end of the year… She still goes to report: 👉 “I madeRead more
Yes — you should still file. But… 👉 you will file what is called a NIL RETURN What Is NIL Return? It simply means: 👉 “I earned NO taxable income last year” Let Me Explain With a Simple Story Mama Ngozi didn’t sell tomatoes throughout 2025. At the end of the year… She still goes to report: 👉 “I made nothing” That is: ✓ compliance
✓ no penalty The Authority You’ll Use 👉 Lagos State Internal Revenue Service Oya… Let’s Do It Step-by-Step (Using Your Phone) STEP 1: Open the Website On your phone browser: 👉 Go to: https://lirs.net STEP 2: Click “eTax / Self-Service Portal” Look for: • eTax
• Taxpayer Login Tap it. STEP 3: Login Enter: • TIN (your tax ID)
• Payer ID
• Password If You Don’t Have Password Click: 👉 “Forgot Password” Reset it. STEP 4: Go to “File Annual Return” After login: Tap: 👉 “Annual Returns”
or
👉 “File Return” STEP 5: Select Year Choose: 👉 2025 STEP 6: Enter Income This is the key part Since you were unemployed: 👉 Enter: • Income = ₦0 STEP 7: Confirm NIL Return There is usually an option like: ✓ “No Income”
✓ “Nil Return” Select it. STEP 8: Submit Tap: 👉 Submit STEP 9: Download Proof Very important: • screenshot confirmation
• download acknowledgment STEP 10: Payment 👉 No payment required Because: ✓ no income = no tax Important Warning Do NOT include: • money from family
• gifts
• random transfers Those are: 👉 NOT taxable Common Mistakes to Avoid • not filing at all
• assuming “no income = no action”
• rushing submission
• not saving proof Deadline Reminder 👉 Filing deadline: April 14, 2026 Let Me Be Honest With You Government mainly wants: ✓ record
✓ compliance Even if you earned nothing. Final Truth Filing tax when unemployed is simple: 👉 Declare zero
👉 Submit
👉 Keep proof Let Me Leave You With This Tax is not only about paying money. It is also about: ✓ staying compliant Once you understand that… You will never be confused again.
Yes — every state in Nigeria can have its own tax filing process, even though your TIN remains the same nationwide. Here’s the clarity: 1. TIN vs State Tax ID (Like ASIN) TIN (Tax Identification Number) — issued by Federal Inland Revenue Service (FIRS) Used across Nigeria One person = One TIN (for lRead more
Yes — every state in Nigeria can have its own tax filing process, even though your TIN remains the same nationwide.
Here’s the clarity:
1. TIN vs State Tax ID (Like ASIN)
TIN (Tax Identification Number) — issued by Federal Inland Revenue Service (FIRS)
Used across Nigeria
One person = One TIN (for life)
However…
Many states also create their own internal taxpayer ID for administrative purposes.
Examples:
Anambra State Internal Revenue Service uses ASIN (Anambra State Identification Number)
Lagos State Internal Revenue Service uses LASRIN
Imo State Internal Revenue Service may generate state taxpayer ID when you register
So yes — states may have their own systems, but TIN is still the master number.
2. If You Live in Imo State — Where Should You File?
For Personal Income Tax, you file in: 👉 State where you live and work
So since you’re living in Imo: You should file with
Imo State Internal Revenue Service
Even if:
Your business is elsewhere
Your company HQ is elsewhere
Your residential state is what matters.
3. How To File in Imo State (Step-by-Step)
Step 1 — Confirm Your TIN
You already have this (good 👍)
Step 2 — Register with Imo State IRS
You may be asked for:
TIN
Phone number
Address in Imo
Occupation
Email
They may generate Imo taxpayer ID for you.
Step 3 — File Your Annual Return
Deadline: 📅 Usually March 31 every year (for individuals)
You submit:
Income details
Business income (if any)
Salary income (if any)
4. Important (Since You Often Ask About Salary + Business)
Because you previously mentioned:
Salary income
Business income
You must declare both when filing in Imo State.
Even if:
PAYE already deducted from salary
You still must file annual return.
(This is very important — many people miss this.)
Quick Summary
TIN = National (used everywhere)
ASIN = State-specific (Anambra example)
Imo may issue its own ID
File tax where you live (Imo)
The difference between filing taxable income with Federal Inland Revenue Service (FIRS) and State Internal Revenue Service (State IRS) depends mainly on who you are and the type of income. Here’s the clear breakdown 👇 1. FIRS (Federal Tax) 🇳🇬 You file with FIRS if you are: Individuals Employees of FRead more
The difference between filing taxable income with Federal Inland Revenue Service (FIRS) and State Internal Revenue Service (State IRS) depends mainly on who you are and the type of income.
Here’s the clear breakdown 👇
1. FIRS (Federal Tax) 🇳🇬
You file with FIRS if you are:
Individuals
Employees of Federal Government
Armed forces, police, immigration, etc.
Staff of Foreign embassies
Nigerians working abroad but resident in Nigeria
Residents of FCT Abuja
Companies
All Companies registered in Nigeria (Limited Liability Companies)
Taxes handled by FIRS
Companies Income Tax (CIT)
Value Added Tax (VAT)
Withholding Tax (Companies)
Education Tax
Petroleum Profit Tax
Capital Gains Tax (Companies)
2. State IRS (State Tax)
You file with State Internal Revenue Service if you are:
Individuals
Salary earners (Private company staff)
Business owners (sole proprietor)
Professionals (consultants, freelancers)
Self-employed persons
Example:
If you live/work in Lagos → file with Lagos State IRS
If you live/work in Rivers → file with Rivers State IRS
Taxes handled by State IRS
Personal Income Tax (PIT)
PAYE (Salary earners)
Direct Assessment (Business owners)
Capital Gains Tax (Individuals)
Simple Rule to Remember 🧠
If You Are
File With
Company (Ltd)
FIRS
Salary earner (Private Company)
State IRS
Business Owner (Individual)
State IRS
Federal Government Staff
FIRS
Abuja Resident
FIRS
Your Case (Based on your previous questions)
Since you mentioned:
Salary (PAYE deducted)
Running a business
You may need to:
File Personal Income Tax with your State IRS
Declare both salary + business income
Important Tip ⚠️
Even if PAYE is deducted from salary:
You still may need to file annual tax return with State IRS
When filing tax, Year of Assessment (YOA) refers to the year you are reporting income for — not necessarily the year you are filing. Simple Rule Year of Assessment = Previous year's income Example If you are filing in 2026: You are reporting income earned in 2025 So your Year of Assessment = 2025 MoRead more
When filing tax, Year of Assessment (YOA) refers to the year you are reporting income for — not necessarily the year you are filing.
Simple Rule
Year of Assessment = Previous year’s income
Example
If you are filing in 2026:
You are reporting income earned in 2025
So your Year of Assessment = 2025
More Examples
When You File
Income Year
Year of Assessment
2026
2025 income
2025
2025
2024 income
2024
2024
2023 income
2023
Nigeria Tax Rule (Important)
In Nigeria:
Tax returns are usually filed between January 1 — March 31
And it’s for the previous year’s income
So right now (2026):
You should normally use 2025 as your Year of Assessment
Your situation is actually very common, and the good news is: your tax filing will be simple and likely zero tax 👍 Let’s break it down clearly. First — What Counts as Taxable Income? Under the Personal Income Tax Act, only taxable income is declared, such as: ✅ Salary ✅ Business income ✅ Freelance iRead more
Your situation is actually very common, and the good news is: your tax filing will be simple and likely zero tax 👍
Let’s break it down clearly.
First — What Counts as Taxable Income?
Under the Personal Income Tax Act, only taxable income is declared, such as:
✅ Salary
✅ Business income
✅ Freelance income
✅ Rental income
✅ Professional income
But money from friends and family is NOT taxable.
So:
Money received through OPay from family/friends → ❌ Not taxable
Gifts/allowances from relatives → ❌ Not taxable
School support → ❌ Not taxable
You do not declare these.
Your Timeline (Based on What You Said)
January 2025 — August 2025
You were a student
Receiving money from friends & family
No employment
👉 Result: No taxable income
September 2025 — December 2025
You started receiving:
Salary (via Sterling Bank)
TVET stipend
👉 These may be taxable depending on amount
What You Should File
You will file Annual Return for 2025:
Step 1: Declare Your Status
You file as:
Part-year employee
Income from September — December only
Step 2: What You Declare
You declare:
Salary received (Sept–Dec 2025)
TVET stipend (if taxable)
You do NOT declare:
OPay transfers from friends
Family support
School money
Most Likely Outcome
Because you worked only 4 months, your income may be below taxable threshold.
Nigeria gives Consolidated Relief Allowance:
₦200,000 OR
1% gross income
Plus 20% relief
This often results in zero tax for low income earners.
Where You File
You file with your state of residence:
If you live in Lagos → Lagos State Internal Revenue Service
If Rivers → Rivers IRS
If Osun → Osun IRS
What You Should File (Simple Answer)
You will likely file:
✅ Nil Return (if income is low)
or
✅ Part-year salary return
Documents to Prepare
Just get:
Salary amount (Sept–Dec 2025)
Employment start date
TIN (if available)
That’s all.
You’re actually in a low-risk category — no need to worry.
Got it — let’s break this carefully. Since you’re a federal employee living in Taraba State with PAYE deductions and a side hustle, your tax filing involves combining your employment income with your other income from the side business. Here’s how to approach it: 1. Understand Your Tax Situation AsRead more
Got it — let’s break this carefully. Since you’re a federal employee living in Taraba State with PAYE deductions and a side hustle, your tax filing involves combining your employment income with your other income from the side business. Here’s how to approach it:
1. Understand Your Tax Situation
As a federal worker: Your PAYE (Pay-As-You-Earn) is already deducted by your employer monthly. This covers your personal income tax (PIT) for employment income.
Side hustle: Any income from your side business (freelance, sales, consulting, etc.) is additional taxable income. You are responsible for declaring this when filing your annual tax return.
⚠️ Even though your salary is taxed at source, your side hustle income must be added to your total income when filing PIT.
2. Collect Your Income Records
From employment: Obtain a PAYE summary or a certificate of tax deduction from your employer. This shows how much tax has been deducted for the year.
From your side hustle: Gather all receipts, invoices, bank statements, or sales records. This is your taxable income outside employment.
3. Determine Your Total Taxable Income
Total taxable income = salary income after allowable deductions + side hustle profit.
Allowable deductions may include pension contributions, life insurance, and other approved reliefs.
4. Filing Your Tax Return
In Nigeria, you can file PIT either online via the state tax portal (Taraba State) or at a Physical State Internal Revenue Service (SIRS) office. Steps:
Register or log in with your TIN (use your personal TIN from employment).
Input your salary information (from PAYE certificate).
Add side hustle income: Declare the total gross income from your side business.
Calculate tax: The system will adjust for PAYE already deducted from your salary and compute any additional tax owed on side hustle income.
Submit and pay any balance if required.
5. Reconciling PAYE with Side Hustle
Your employer has already paid tax on your salary.
Your side hustle is taxed separately, but the PIT system aggregates all income.
If your PAYE exceeds the total liability after including side hustle, you may not owe extra.
If side hustle pushes your total income higher, you may have additional tax to pay.
6. Tips to Avoid Penalties
Keep clear records for your side hustle.
Don’t mix personal and business money.
File before the annual deadline (usually April for the previous year).
Claim all allowable deductions and reliefs.
If you want, I can create a step-by-step template showing exactly how to combine your salary and side hustle for Taraba State PIT filing, including sample calculations of what you might owe or refund.
Before we start… Lagos State Government has extended the tax filing deadline to April 14, 2026. So if you were rushing before, relax… But don’t delay again ooh, use this extra time wisely. Let Me Explain.. Imagine Mama Ngozi sells tomatoes in Lagos. One day she hears: “Tax deadline is here ooh!, It'Read more
Before we start…
Lagos State Government has extended the tax filing deadline to April 14, 2026.
So if you were rushing before, relax…
But don’t delay again ooh, use this extra time wisely.
Let Me Explain..
Imagine Mama Ngozi sells tomatoes in Lagos.
One day she hears:
“Tax deadline is here ooh!, It’s on the 31st of March ooh!”
She panics:
“Ah! I don’t understand this thing o…”
If you feel like Mama Ngozi, relax.
As your Financial Literacy Advocate, I will break it down step by step.
First… What Exactly are You Are Filing?
You are NOT filing 2026 tax.
You are declaring the money you earned from:
January – December 2025
That is what Lagos State wants.
Here’s a Step by Step Process to File your Personal Income Tax Annual Returned in Lagos
STEP 1: Get Your TIN (Tax Identification Number)
Go to Google and search:
Tax Identification Number in Nigeria
Open the Nigeria Revenue Service official portal: taxid.nrs.gov.ng
Enter your NIN
Enter your Date of Birth
Generate your TIN
This is your tax identity. Keep it safe.
STEP 2: Create Your Lagos Tax Account (LIRS)
Go to: etax.lirs.net
Create an account using:
Your BVN (recommended)
Your personal details
Then generate your:
Lagos Payer ID
Note:
Individuals = starts with N-
Companies = starts with C-
STEP 3: Login to Your Dashboard
Use:
Your newly created Payer ID
Your Password
STEP 4: File Your Annual Return
Click:
“File Annual Return”
VERY IMPORTANT (This is Where Many People Make Mistake)
If you earn:
₦100,000 per month
Do NOT enter ₦100,000.
Multiply it:
₦100,000 × 12 = ₦1,200,000
That is your annual income.
This applies to Salary Earners and Business Owners, including Freelancers or Content Creators… You are to pay from your Net Income.
STEP 5: Add Other Income (If Any)
You may see:
Rent
Business income
Dividends
If you have them, include them
If not, skip
STEP 6: Add Tax Relief (Very Important)
You may see:
Pension
Insurance
Mortgage
Add them if you have them
This will reduce your tax
STEP 7: Submit
After filling everything:
Click Submit
The system will calculate your tax automatically.
Here’s the Secret Many People Don’t Know
If your income is small…
You may pay:
Zero tax
But… if you don’t file at all…
You will pay penalty of ₦100,000 and a subsequent ₦50,000 for each of the following Month until you file your Annual Returned.
Now that deadline has been extended to: April 14, 2026
Don’t say:
“I will do it later…”
Do it now.
IN SIMPLE SUMMARY:
Get your TIN
Create your LIRS account
Calculate your annual income
Submit your return
That’s all.
The problem is not tax…
The problem is lack of understanding
Once you understand it…
Everything becomes simple.
If you still have questions…
Ask here on Fokona
That is why this platform exists..
To make money, tax, and investing simple for everyone.
If you haven’t paid any tax before, you can still file a Personal Income Tax (PIT) return — and what you file depends on your situation. Here’s the correct breakdown: 1. If You Had No Income Last Year You file a Nil Return (also called Zero Income Return). This simply means: You had no job No busineRead more
If you haven’t paid any tax before, you can still file a Personal Income Tax (PIT) return — and what you file depends on your situation.
Here’s the correct breakdown:
1. If You Had No Income Last Year
You file a Nil Return (also called Zero Income Return).
This simply means:
You had no job
No business income
No freelance income
No investment income
So you declare ₦0 income.
This is accepted by tax authorities like:
Lagos State Internal Revenue Service
Federal Inland Revenue Service
Filing a Nil Return protects you from future penalties.
2. If You Just Got Employed This Year (But Not Last Year)
Example:
Got job in 2026
Filing for 2025
Then:
You file Nil Return for 2025
Because you had no income in 2025
This is completely normal.
3. If You Had Income But No Tax Was Paid
Example:
Freelance work
Business
Side hustle
Rental income
Then you must declare that income even if:
No tax was deducted
No TIN yet
You file:
Income earned
Then tax authority calculates tax
This is required under the Personal Income Tax Act.
4. Who Must File Annual PIT in Nigeria?
You should file if you:
Are employed (public or private)
Run a business
Freelance / side hustle
Just got employed recently (file Nil Return for previous year)
Do salary earners who pay PAYE need to file annual tax returns in Nigeria?
Ah, tax can be a tricky topic, but don't worry, I'm here to help you understand it easily. As a salary earner who pays PAYE (Pay As You Earn), the tax is deducted from your payment every month. Now, the question is, do you still need to file your tax returns even though the tax is already being deduRead more
Ah, tax can be a tricky topic, but don’t worry, I’m here to help you understand it easily. As a salary earner who pays PAYE (Pay As You Earn), the tax is deducted from your payment every month. Now, the question is, do you still need to file your tax returns even though the tax is already being deducted monthly? Let’s break it down for you:
Simple Explanation:
Filing your tax returns means submitting a document to the government that shows how much money you earned and how much tax you’ve already paid.
How it Works:
Even though tax is being deducted from your salary monthly through PAYE, it’s still important to file your tax returns. This is because the government uses the information in your tax returns to calculate if you paid the correct amount of tax based on your total income and expenses for the year.
Benefits:
1. Claiming refunds: If you’ve overpaid your tax, you can get a refund by filing your tax returns.
2. Avoiding penalties: Filing your tax returns on time helps you avoid penalties and legal issues.
3. Updating information: You can update your personal details or claim deductions by filing your tax returns.
Risks:
1. Penalties: Failing to file your tax returns can lead to penalties and legal consequences.
2. Missed refunds: If you’re eligible for a tax refund but don’t file your returns, you might miss out on getting your money back.
Real-life Nigerian Example:
Imagine you’re a teacher who pays tax every month through PAYE. By filing your tax returns, you can claim deductions for expenses related to your profession, leading to a lower tax bill.
Common Mistakes:
1. Ignoring filing: Some people think they don’t need to file if tax is already deducted, but that’s not the case.
2. Incorrect information: Providing inaccurate details in your tax returns can lead to issues.
Practical Steps to Get Started:
1. Gather your income and expense documents.
2. Fill out the tax return form accurately.
3. Submit the form to the appropriate tax authority before the deadline.
Short Summary:
Even though tax is deducted from your salary monthly through PAYE, it’s essential to file your tax returns to ensure you’ve paid the correct amount of tax and potentially claim refunds or deductions. Don’t forget to file on time to avoid penalties and legal troubles.
Now, do you know where you can get the tax return forms to file your taxes?
See lessAre Incorporated Trustees and Churches Required to File Tax Returns?
An incorporated trustee such as a church in Nigeria is generally treated as a non-profit / not-for-profit organization, but that does not mean it is completely exempt from tax compliance. Under the Nigerian tax system, churches registered with the Corporate Affairs Commission as Incorporated TrusteeRead more
An incorporated trustee such as a church in Nigeria is generally treated as a non-profit / not-for-profit organization, but that does not mean it is completely exempt from tax compliance.
See lessUnder the Nigerian tax system, churches registered with the Corporate Affairs Commission as Incorporated Trustees are usually exempt from Companies Income Tax (CIT) on income used strictly for their religious and charitable objectives. However, they still have filing and compliance obligations with the Federal Inland Revenue Service and sometimes the State Internal Revenue Service.
Here is the practical breakdown:
1. Register for Tax Identification Number (TIN)
Even though the church is nonprofit, it should still obtain a TIN from:
Federal Inland Revenue Service
Or via CAC post-incorporation integration
You’ll typically need:
CAC certificate
Constitution/trust deed
Registered address
Trustee details
2. File Annual Returns With FIRS
Many churches misunderstand “tax exempt” to mean “no filing required.”
In reality:
The church may be exempt from paying CIT,
BUT it still needs to file annual tax returns/compliance documents.
Usually this involves:
Audited financial statements
Statement of affairs/income & expenditure
Tax exemption application or confirmation
Annual self-assessment filings
Failure to file can still attract penalties even where no tax is due.
3. PAYE Obligations (Very Important)
If the church has:
Pastors on salary,
Admin staff,
Security,
Musicians,
Drivers, etc.,
then the church must:
deduct PAYE,
remit to the State Internal Revenue Service,
file PAYE returns monthly/annually.
For example in Rivers State, this is handled by the state tax authority.
4. Withholding Tax (WHT)
The church may also need to deduct withholding tax on certain payments such as:
contractors,
consultants,
vendors,
rent,
professional services.
Example: If the church pays a contractor ₦1 million for renovation, WHT may need to be deducted and remitted.
5. VAT Position
Religious activities themselves are generally not VATable.
But VAT issues can arise if the church:
runs commercial businesses,
sells goods,
operates schools/bookshops/event centers commercially.
Pure tithes, offerings, and donations are not VATable.
6. Tax Exemption Is Conditional
Tax exemption can be lost if:
church funds are diverted for private benefit,
profits are distributed,
commercial activities dominate operations.
Commercial income not applied to charitable objectives may become taxable.
7. Annual CAC Returns Still Required
Separate from tax filing, Incorporated Trustees must also file annual returns with the:
Corporate Affairs Commission
Non-filing can eventually lead to penalties or delisting issues.
Recommended Practical Steps
Obtain/confirm TIN
Open proper accounting records
Prepare yearly financial statements
File annual returns with CAC
File tax compliance returns with FIRS
Register PAYE if staff are employed
Engage a small tax consultant/accountant familiar with nonprofits
You can also review:
firs.gov.ng
cac.gov.ng
How Do I File Personal Income Tax (PIT) Online in Lagos State Using a Smartphone as an Unemployed Individual?
Yes — you should still file. But… 👉 you will file what is called a NIL RETURN What Is NIL Return? It simply means: 👉 “I earned NO taxable income last year” Let Me Explain With a Simple Story Mama Ngozi didn’t sell tomatoes throughout 2025. At the end of the year… She still goes to report: 👉 “I madeRead more
Yes — you should still file.
But…
👉 you will file what is called a NIL RETURN
What Is NIL Return?
It simply means:
👉 “I earned NO taxable income last year”
Let Me Explain With a Simple Story
Mama Ngozi didn’t sell tomatoes throughout 2025.
At the end of the year…
She still goes to report:
👉 “I made nothing”
That is:
✓ compliance
✓ no penalty
The Authority You’ll Use
👉 Lagos State Internal Revenue Service
Oya… Let’s Do It Step-by-Step (Using Your Phone)
STEP 1: Open the Website
On your phone browser:
👉 Go to: https://lirs.net
STEP 2: Click “eTax / Self-Service Portal”
Look for:
• eTax
• Taxpayer Login
Tap it.
STEP 3: Login
Enter:
• TIN (your tax ID)
• Payer ID
• Password
If You Don’t Have Password
Click:
👉 “Forgot Password”
Reset it.
STEP 4: Go to “File Annual Return”
After login:
Tap:
👉 “Annual Returns”
or
👉 “File Return”
STEP 5: Select Year
Choose:
👉 2025
STEP 6: Enter Income
This is the key part
Since you were unemployed:
👉 Enter:
• Income = ₦0
STEP 7: Confirm NIL Return
There is usually an option like:
✓ “No Income”
✓ “Nil Return”
Select it.
STEP 8: Submit
Tap:
👉 Submit
STEP 9: Download Proof
Very important:
• screenshot confirmation
• download acknowledgment
STEP 10: Payment
👉 No payment required
Because:
✓ no income = no tax
Important Warning
Do NOT include:
• money from family
• gifts
• random transfers
Those are:
👉 NOT taxable
Common Mistakes to Avoid
• not filing at all
• assuming “no income = no action”
• rushing submission
• not saving proof
Deadline Reminder
👉 Filing deadline: April 14, 2026
Let Me Be Honest With You
Government mainly wants:
✓ record
✓ compliance
Even if you earned nothing.
Final Truth
Filing tax when unemployed is simple:
👉 Declare zero
👉 Submit
👉 Keep proof
Let Me Leave You With This
Tax is not only about paying money.
It is also about:
✓ staying compliant
Once you understand that…
You will never be confused again.
Rose Ejituru
See lessHow Does Personal Income Tax Filing Work in Imo State, Nigeria?
Yes — every state in Nigeria can have its own tax filing process, even though your TIN remains the same nationwide. Here’s the clarity: 1. TIN vs State Tax ID (Like ASIN) TIN (Tax Identification Number) — issued by Federal Inland Revenue Service (FIRS) Used across Nigeria One person = One TIN (for lRead more
Yes — every state in Nigeria can have its own tax filing process, even though your TIN remains the same nationwide.
See lessHere’s the clarity:
1. TIN vs State Tax ID (Like ASIN)
TIN (Tax Identification Number) — issued by Federal Inland Revenue Service (FIRS)
Used across Nigeria
One person = One TIN (for life)
However…
Many states also create their own internal taxpayer ID for administrative purposes.
Examples:
Anambra State Internal Revenue Service uses ASIN (Anambra State Identification Number)
Lagos State Internal Revenue Service uses LASRIN
Imo State Internal Revenue Service may generate state taxpayer ID when you register
So yes — states may have their own systems, but TIN is still the master number.
2. If You Live in Imo State — Where Should You File?
For Personal Income Tax, you file in: 👉 State where you live and work
So since you’re living in Imo: You should file with
Imo State Internal Revenue Service
Even if:
Your business is elsewhere
Your company HQ is elsewhere
Your residential state is what matters.
3. How To File in Imo State (Step-by-Step)
Step 1 — Confirm Your TIN
You already have this (good 👍)
Step 2 — Register with Imo State IRS
You may be asked for:
TIN
Phone number
Address in Imo
Occupation
Email
They may generate Imo taxpayer ID for you.
Step 3 — File Your Annual Return
Deadline: 📅 Usually March 31 every year (for individuals)
You submit:
Income details
Business income (if any)
Salary income (if any)
4. Important (Since You Often Ask About Salary + Business)
Because you previously mentioned:
Salary income
Business income
You must declare both when filing in Imo State.
Even if:
PAYE already deducted from salary
You still must file annual return.
(This is very important — many people miss this.)
Quick Summary
TIN = National (used everywhere)
ASIN = State-specific (Anambra example)
Imo may issue its own ID
File tax where you live (Imo)
What Is the Difference Between Federal and State Tax in Nigeria (FIRS vs State Internal Revenue Service)?
The difference between filing taxable income with Federal Inland Revenue Service (FIRS) and State Internal Revenue Service (State IRS) depends mainly on who you are and the type of income. Here’s the clear breakdown 👇 1. FIRS (Federal Tax) 🇳🇬 You file with FIRS if you are: Individuals Employees of FRead more
The difference between filing taxable income with Federal Inland Revenue Service (FIRS) and State Internal Revenue Service (State IRS) depends mainly on who you are and the type of income.
Here’s the clear breakdown 👇
1. FIRS (Federal Tax) 🇳🇬
You file with FIRS if you are:
Individuals
Employees of Federal Government
Armed forces, police, immigration, etc.
Staff of Foreign embassies
Nigerians working abroad but resident in Nigeria
Residents of FCT Abuja
Companies
All Companies registered in Nigeria (Limited Liability Companies)
Taxes handled by FIRS
Companies Income Tax (CIT)
Value Added Tax (VAT)
Withholding Tax (Companies)
Education Tax
Petroleum Profit Tax
Capital Gains Tax (Companies)
2. State IRS (State Tax)
You file with State Internal Revenue Service if you are:
Individuals
Salary earners (Private company staff)
Business owners (sole proprietor)
Professionals (consultants, freelancers)
Self-employed persons
Example:
If you live/work in Lagos → file with Lagos State IRS
If you live/work in Rivers → file with Rivers State IRS
Taxes handled by State IRS
Personal Income Tax (PIT)
PAYE (Salary earners)
Direct Assessment (Business owners)
Capital Gains Tax (Individuals)
Simple Rule to Remember 🧠
If You Are
File With
Company (Ltd)
FIRS
Salary earner (Private Company)
State IRS
Business Owner (Individual)
State IRS
Federal Government Staff
FIRS
Abuja Resident
FIRS
Your Case (Based on your previous questions)
Since you mentioned:
Salary (PAYE deducted)
Running a business
You may need to:
File Personal Income Tax with your State IRS
Declare both salary + business income
Important Tip ⚠️
Even if PAYE is deducted from salary:
You still may need to file annual tax return with State IRS
See lessWhen filing my tax, what year should i put under "Year of Assessment?"
When filing tax, Year of Assessment (YOA) refers to the year you are reporting income for — not necessarily the year you are filing. Simple Rule Year of Assessment = Previous year's income Example If you are filing in 2026: You are reporting income earned in 2025 So your Year of Assessment = 2025 MoRead more
When filing tax, Year of Assessment (YOA) refers to the year you are reporting income for — not necessarily the year you are filing.
Simple Rule
Year of Assessment = Previous year’s income
Example
If you are filing in 2026:
You are reporting income earned in 2025
So your Year of Assessment = 2025
More Examples
When You File
Income Year
Year of Assessment
2026
2025 income
2025
2025
2024 income
2024
2024
2023 income
2023
Nigeria Tax Rule (Important)
In Nigeria:
Tax returns are usually filed between January 1 — March 31
And it’s for the previous year’s income
So right now (2026):
You should normally use 2025 as your Year of Assessment
Special Cases
However, it can differ slightly if:
You’re filing for backlog years
You’re filing first time
You’re filing for company vs individual
See lessHow Do Students in Nigeria File Personal Income Tax When They Have Mixed Income From School, Gifts, and Salary?
Your situation is actually very common, and the good news is: your tax filing will be simple and likely zero tax 👍 Let’s break it down clearly. First — What Counts as Taxable Income? Under the Personal Income Tax Act, only taxable income is declared, such as: ✅ Salary ✅ Business income ✅ Freelance iRead more
Your situation is actually very common, and the good news is: your tax filing will be simple and likely zero tax 👍
Let’s break it down clearly.
First — What Counts as Taxable Income?
Under the Personal Income Tax Act, only taxable income is declared, such as:
✅ Salary
✅ Business income
✅ Freelance income
✅ Rental income
✅ Professional income
But money from friends and family is NOT taxable.
So:
Money received through OPay from family/friends → ❌ Not taxable
Gifts/allowances from relatives → ❌ Not taxable
School support → ❌ Not taxable
You do not declare these.
Your Timeline (Based on What You Said)
January 2025 — August 2025
You were a student
Receiving money from friends & family
No employment
👉 Result: No taxable income
September 2025 — December 2025
You started receiving:
Salary (via Sterling Bank)
TVET stipend
👉 These may be taxable depending on amount
What You Should File
You will file Annual Return for 2025:
Step 1: Declare Your Status
You file as:
Part-year employee
Income from September — December only
Step 2: What You Declare
You declare:
Salary received (Sept–Dec 2025)
TVET stipend (if taxable)
You do NOT declare:
OPay transfers from friends
Family support
School money
Most Likely Outcome
Because you worked only 4 months, your income may be below taxable threshold.
Nigeria gives Consolidated Relief Allowance:
₦200,000 OR
1% gross income
Plus 20% relief
This often results in zero tax for low income earners.
Where You File
You file with your state of residence:
If you live in Lagos → Lagos State Internal Revenue Service
If Rivers → Rivers IRS
If Osun → Osun IRS
What You Should File (Simple Answer)
You will likely file:
✅ Nil Return (if income is low)
or
✅ Part-year salary return
Documents to Prepare
Just get:
Salary amount (Sept–Dec 2025)
Employment start date
TIN (if available)
That’s all.
You’re actually in a low-risk category — no need to worry.
See lessHow Do Federal Workers in Nigeria File Personal Income Tax When They Have Side Hustles in Addition to Salary?
Got it — let’s break this carefully. Since you’re a federal employee living in Taraba State with PAYE deductions and a side hustle, your tax filing involves combining your employment income with your other income from the side business. Here’s how to approach it: 1. Understand Your Tax Situation AsRead more
Got it — let’s break this carefully. Since you’re a federal employee living in Taraba State with PAYE deductions and a side hustle, your tax filing involves combining your employment income with your other income from the side business. Here’s how to approach it:
See less1. Understand Your Tax Situation
As a federal worker: Your PAYE (Pay-As-You-Earn) is already deducted by your employer monthly. This covers your personal income tax (PIT) for employment income.
Side hustle: Any income from your side business (freelance, sales, consulting, etc.) is additional taxable income. You are responsible for declaring this when filing your annual tax return.
⚠️ Even though your salary is taxed at source, your side hustle income must be added to your total income when filing PIT.
2. Collect Your Income Records
From employment: Obtain a PAYE summary or a certificate of tax deduction from your employer. This shows how much tax has been deducted for the year.
From your side hustle: Gather all receipts, invoices, bank statements, or sales records. This is your taxable income outside employment.
3. Determine Your Total Taxable Income
Total taxable income = salary income after allowable deductions + side hustle profit.
Allowable deductions may include pension contributions, life insurance, and other approved reliefs.
4. Filing Your Tax Return
In Nigeria, you can file PIT either online via the state tax portal (Taraba State) or at a Physical State Internal Revenue Service (SIRS) office. Steps:
Register or log in with your TIN (use your personal TIN from employment).
Input your salary information (from PAYE certificate).
Add side hustle income: Declare the total gross income from your side business.
Calculate tax: The system will adjust for PAYE already deducted from your salary and compute any additional tax owed on side hustle income.
Submit and pay any balance if required.
5. Reconciling PAYE with Side Hustle
Your employer has already paid tax on your salary.
Your side hustle is taxed separately, but the PIT system aggregates all income.
If your PAYE exceeds the total liability after including side hustle, you may not owe extra.
If side hustle pushes your total income higher, you may have additional tax to pay.
6. Tips to Avoid Penalties
Keep clear records for your side hustle.
Don’t mix personal and business money.
File before the annual deadline (usually April for the previous year).
Claim all allowable deductions and reliefs.
If you want, I can create a step-by-step template showing exactly how to combine your salary and side hustle for Taraba State PIT filing, including sample calculations of what you might owe or refund.
Tax Deadline Is March 31 – How Can I File My Personal Income Tax in Lagos Nigeria Easily?
Before we start… Lagos State Government has extended the tax filing deadline to April 14, 2026. So if you were rushing before, relax… But don’t delay again ooh, use this extra time wisely. Let Me Explain.. Imagine Mama Ngozi sells tomatoes in Lagos. One day she hears: “Tax deadline is here ooh!, It'Read more
Before we start…
Lagos State Government has extended the tax filing deadline to April 14, 2026.
So if you were rushing before, relax…
But don’t delay again ooh, use this extra time wisely.
Let Me Explain..
Imagine Mama Ngozi sells tomatoes in Lagos.
One day she hears:
She panics:
If you feel like Mama Ngozi, relax.
As your Financial Literacy Advocate, I will break it down step by step.
First… What Exactly are You Are Filing?
You are NOT filing 2026 tax.
You are declaring the money you earned from:
January – December 2025
That is what Lagos State wants.
Here’s a Step by Step Process to File your Personal Income Tax Annual Returned in Lagos
STEP 1: Get Your TIN (Tax Identification Number)
Go to Google and search:
Tax Identification Number in Nigeria
Open the Nigeria Revenue Service official portal: taxid.nrs.gov.ng
Enter your NIN
Enter your Date of Birth
Generate your TIN
This is your tax identity. Keep it safe.
STEP 2: Create Your Lagos Tax Account (LIRS)
Go to: etax.lirs.net
Create an account using:
Your BVN (recommended)
Your personal details
Then generate your:
Lagos Payer ID
Note:
Individuals = starts with N-
Companies = starts with C-
STEP 3: Login to Your Dashboard
Use:
Your newly created Payer ID
Your Password
STEP 4: File Your Annual Return
Click:
“File Annual Return”
VERY IMPORTANT (This is Where Many People Make Mistake)
If you earn:
₦100,000 per month
Do NOT enter ₦100,000.
Multiply it:
₦100,000 × 12 = ₦1,200,000
That is your annual income.
This applies to Salary Earners and Business Owners, including Freelancers or Content Creators… You are to pay from your Net Income.
STEP 5: Add Other Income (If Any)
You may see:
Rent
Business income
Dividends
If you have them, include them
If not, skip
STEP 6: Add Tax Relief (Very Important)
You may see:
Pension
Insurance
Mortgage
Add them if you have them
This will reduce your tax
STEP 7: Submit
After filling everything:
Click Submit
The system will calculate your tax automatically.
Here’s the Secret Many People Don’t Know
If your income is small…
You may pay:
Zero tax
But… if you don’t file at all…
You will pay penalty of ₦100,000 and a subsequent ₦50,000 for each of the following Month until you file your Annual Returned.
Now that deadline has been extended to: April 14, 2026
Don’t say:
Do it now.
IN SIMPLE SUMMARY:
Get your TIN
Create your LIRS account
Calculate your annual income
Submit your return
That’s all.
The problem is not tax…
The problem is lack of understanding
Once you understand it…
Everything becomes simple.
If you still have questions…
Ask here on Fokona
That is why this platform exists..
To make money, tax, and investing simple for everyone.
See lessWhat Should I File for Personal Income Tax in Nigeria If I Have Never Paid Tax Before?
If you haven’t paid any tax before, you can still file a Personal Income Tax (PIT) return — and what you file depends on your situation. Here’s the correct breakdown: 1. If You Had No Income Last Year You file a Nil Return (also called Zero Income Return). This simply means: You had no job No busineRead more
If you haven’t paid any tax before, you can still file a Personal Income Tax (PIT) return — and what you file depends on your situation.
Here’s the correct breakdown:
1. If You Had No Income Last Year
You file a Nil Return (also called Zero Income Return).
This simply means:
You had no job
No business income
No freelance income
No investment income
So you declare ₦0 income.
This is accepted by tax authorities like:
Lagos State Internal Revenue Service
Federal Inland Revenue Service
Filing a Nil Return protects you from future penalties.
2. If You Just Got Employed This Year (But Not Last Year)
Example:
Got job in 2026
Filing for 2025
Then:
You file Nil Return for 2025
Because you had no income in 2025
This is completely normal.
3. If You Had Income But No Tax Was Paid
Example:
Freelance work
Business
Side hustle
Rental income
Then you must declare that income even if:
No tax was deducted
No TIN yet
You file:
Income earned
Then tax authority calculates tax
This is required under the Personal Income Tax Act.
4. Who Must File Annual PIT in Nigeria?
You should file if you:
Are employed (public or private)
Run a business
Freelance / side hustle
Just got employed recently (file Nil Return for previous year)
Simple Rule
No income → File Nil Return
Income → File Income Return
Just employed → File Nil Return for previous year
Example (Your Case Scenario)
Someone:
Just employed by Lagos State Government
No salary yet
No previous tax
He should:
File Nil Return for last year
Wait for PAYE once salary starts
No penalty. No stress.
See less