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Hi Iking I have heard this a lot but I sincerely don’t understand. The new tax law took effect this January 2026, which means that our first tax filing will be due next year. So, why are we filing for last year’s personal income tax when our tax numbers aren’t even up to a year? Please help us clarify this. Thank you so much.
Tax filing is always done AFTER the year has ended. Not during the year. Let Me Explain With a Simple Story Mama Ngozi sells tomatoes throughout 2025. From January to December: • she is making money • keeping records Government does NOT disturb her during the year. Then What Happens? At the END of tRead more
Tax filing is always done AFTER the year has ended.
Not during the year.
Let Me Explain With a Simple Story
Mama Ngozi sells tomatoes throughout 2025.
From January to December:
• she is making money
• keeping records
Government does NOT disturb her during the year.
Then What Happens?
At the END of the year…
She now comes and says:
👉 “This is what I made in 2025.”
That is when tax is calculated and filed.
Oya… Relax Let Me Explain
How Tax Timing Works (Very Important)
2025 Income
You worked, earned, and did business in:
👉 January – December 2025
When Do You File?
👉 In 2026
Why?
Because:
✓ the year must finish first
✓ total income must be known
So What Is Happening Now?
Even though a new tax law started in 2026…
👉 you are currently filing for 2025 income
Let Me Break It Down Simply
2025 = Income Year
2026 = Filing Year
What About the New Tax Law?
The new law affects:
👉 income earned from 2026 onward
Meaning:
• 2025 income → old rules
• 2026 income → new rules
Let Me Be Honest With You
Many people think:
“New law = immediate filing”
That is NOT how tax works.
Simple Analogy
Think of school.
You:
• attend classes in 2025
• write exams after finishing
You don’t write exam:
✓ in the middle of the class
Important Note for Salary Earners
If you are working:
✓ tax is already deducted monthly (PAYE)
So filing is mostly:
• confirmation
• record submission
Final Truth
You are not filing “early”
You are filing:
✓ for the previous year
Let Me Leave You With This
Whenever you hear “tax filing”
Always ask:
• “Which income year is this for?”
Because once you understand that…
The confusion disappears completely.
I HOPE THIS HELPS
Rose Ejituru
See lessThank you so much, for responding, I appreciate it. However, this doesn't answer the question entirely. We have never filed personal income tax before and we prepared ourselves that tax has become serious this 2026 which is a good thing and this means filing of tax begins next year for the 2026 fiscRead more
Thank you so much, for responding, I appreciate it.
See lessHowever, this doesn’t answer the question entirely. We have never filed personal income tax before and we prepared ourselves that tax has become serious this 2026 which is a good thing and this means filing of tax begins next year for the 2026 fiscal year. So why are we filing taxes for 2025 when there was no effective tax push for personal income not even TIN until later last year
Tax did NOT start in 2026. What started in 2026 is: ✓ stronger enforcement ✓ better tracking (TIN, BVN linkage, etc.) Let Me Explain With a Simple Story Mama Ngozi has always been supposed to pay market dues. But for years: • nobody checked her strictly • nobody followed her up So she ignored it. ThRead more
Tax did NOT start in 2026.
What started in 2026 is:
✓ stronger enforcement ✓ better tracking (TIN, BVN linkage, etc.)
Let Me Explain With a Simple Story
Mama Ngozi has always been supposed to pay market dues.
But for years:
• nobody checked her strictly • nobody followed her up
So she ignored it.
Then One Day…
The market association becomes serious:
• they start recording traders • they start checking payments
Now they say:
👉 “Bring your record from last year.”
Mama Ngozi Is Confused
“But you didn’t disturb me before?”
Yes…
But:
✓ the obligation was always there
Oya… Relax Let Me Explain
1. Personal Income Tax Is NOT New
Nigeria has had personal income tax law for many years under:
Personal Income Tax Act
Meaning
Even in:
• 2020 • 2021 • 2022 • 2023 • 2024 • 2025
You were legally expected to:
✓ declare income ✓ pay tax (if applicable)
2. What Changed in 2026?
Now government is:
• linking BVN, NIN, bank accounts • tracking income better • enforcing compliance
So It Feels New
But it is not new.
3. Why 2025 Is Being Filed Now
Because:
👉 tax is filed AFTER income is earned
So:
• 2025 income → filed in 2026 • 2026 income → filed in 2027
4. “But We Didn’t Have TIN Before”
Let me be very clear.
TIN is just an identification tool.
Not the start of tax.
Meaning
Even if you didn’t have TIN:
✓ your tax obligation still existed
TIN just makes it:
✓ easier to track you
5. Why Government Is Asking Now
Because now they can:
✓ identify individuals ✓ track financial activity ✓ enforce compliance
Let Me Be Honest With You
What is happening is simple:
Before:
✓ low enforcement
Now:
✓ active enforcement
Important Truth
Government is not saying:
“Start tax from 2026”
They are saying:
👉 “Comply properly from now — including recent years”
Final Clarity
• Tax law existed before 2026
• 2026 brought stronger enforcement
• 2025 is the last completed tax year
• That is why filing is happening now
Let Me Leave You With This
See lessDon’t confuse:
• “we were not doing it”
with:
• “it did not exist”
Because once enforcement starts…
Everything becomes real.
This confusion is very common — and you're asking a very smart question 👏 Let’s break it down very clearly and simply. The Short Answer You are not filing under the new 2026 tax law yet. You are filing 2025 income, which is still governed by the existing tax law — the Personal Income Tax Act. That’sRead more
This confusion is very common — and you’re asking a very smart question 👏
Let’s break it down very clearly and simply.
The Short Answer
You are not filing under the new 2026 tax law yet.
You are filing 2025 income, which is still governed by the existing tax law —
the Personal Income Tax Act.
That’s why tax filing is happening now, not in 2027.
How Tax Filing Actually Works (Very Important)
Personal income tax in Nigeria works backwards:
Year
What Happens
2025
You earn income
2026 (Jan–March 31)
You file tax for 2025
2026
New law begins
2027
First filing under new law
So:
👉 You always file for LAST YEAR’S income
Not the current year.
Example (Simple)
Let’s say:
You worked in 2025
You earned salary in 2025
You must file:
📅 January–March 31, 2026
Even though 2026 law has started, you’re still filing 2025 income.
Why This Is Done
Because:
You can’t file tax for a year that hasn’t finished yet.
For example:
You can’t file 2026 tax in January 2026 because:
You haven’t finished earning in 2026
Your total income is unknown
So the government always waits until the year ends.
Who Set This Rule?
This is based on guidelines from:
Joint Tax Board
Federal Inland Revenue Service
State tax authorities like
Lagos State Internal Revenue Service
When Will The New Tax Law Affect You?
If the new tax law started:
📅 January 2026
Then:
You earn income in 2026 (under new law)
You file that income in 2027
So:
👉 2027 is the first filing under the new tax law
Why People Are Confused
Because:
The law changed in 2026
But tax filing still happening in 2026
This makes it look like:
“Why are we filing already?”
But you’re actually filing last year’s income.
Simple Summary
✅ Tax filing is always for last year
✅ 2026 filing = 2025 income
✅ New law starts affecting you in 2026 income
✅ First new-law filing = 2027
This is actually a great question, and it shows you’re thinking like someone serious about compliance — which is valuable, especially since you often discuss investing, stocks, and financial planning. Staying tax-compliant helps with:
Bank loans
Investment opportunities
Business registration
Financial credibility
See less