Pay As You Earn (PAYE) Tax Returns by Employers
Employers are required to deduct and account for personal income tax deducted from the employment income of their employees under the PAYE system by way of a return filed with the Tax Authority on monthly basis.
PAYE returns must be submitted for each month on or before the 10th day of the month following the month to which the tax deductions relate using the appropriate schedule.
Annual Returns by Employers
Employers are required to file annual returns in respect of PAYE deductions made from their respective employees’ income in the past year.

Contents of Annual Returns
Completed form A (Income Tax Form for Returns of Income and claim for allowances and relief)
Form H1 (Annual Income declaration)
A schedule of tax deduction from the employer containing the following information:
Name of employer
Taxpayer Identification Number (TIN) of employer
Names of employees
Taxpayer Identification Number (TIN) of employee
Total emolument for each employee
Consolidated relief
Tax deducted
Overall total tax charged and remitted.
Evidence of payment of tax
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Due Date for Filing Annual Returns by Employers
Every employer is required to file a return not later than 31st January of every year.

Petroleum Profit Tax (PPT) Returns
Companies engaged in petroleum operations file their tax returns at different stages:

Estimated Tax Returns
Every company engaged in petroleum operations is required to file a return of estimated tax not later than two (2) months of the commencement of each accounting year.

Contents of the Estimated Tax Returns
A statement of estimated income and expenses for the period.
A statement of estimated adjusted profit and loss.
Estimated tax and capital allowances computation for the period
Computation of estimated monthly tax payment.
Where, at any time during such accounting period the company is aware that the estimate in such returns requires revision, the company is required to forward another return containing the revised estimated tax.

Annual Returns
This returns are based on actual operation of the company. It is filed within five (5) months after the end of the company’s accounting period with the evidence of payment of the final installment of tax (13th installment).

Contents of an Annual Return
Audited financial statement and accounts for the period.
A statement showing all qualifying expenditure incurred during the period.
Computation of chargeable profits and loss for the period.
A statement of other sums deductible, the liabilities of which were incurred for the period.
Computation of Capital allowances claimable for the period.
Computation of actual (and final) tax payable for the period.
Signed declaration of the correctness of the returns.
Evidence of payment of the final (13th installment) tax.

Due date for Filing Annual Returns
Every company which is or has been engaged in petroleum operations with respect to any accounting period of the company is require to file a return within five months after the expiration of that period.

Transfer Pricing Returns
Companies or entities, which are members of a group or otherwise connected with another company or entity in Nigeria or overseas, are required to submit the following along with the annual income tax returns:

Transfer Pricing Declaration Form
This form is completed once except in the event of significant changes to the information provided initially. The form is to be completed and submitted at the Tax Office where the taxpayer normally files its income tax returns.

Transfer Pricing Disclosure Form
This form shall be completed in order to disclose details of controlled transactions for each year of assessment. The form shall be packaged separately with a copy each of Audited Financial Statements, completed Self-Assessment Form and tax computation schedules and submitted along with the annual income tax returns at the Tax Office where the taxpayer normally files its income tax returns.

Value Added Tax (VAT) Returns
Every taxable person is required to file VAT returns every month with FIRS.

Contents of the VAT Returns
A duly completed VAT form 002 with the following details:

Total Value of supplies made during the period
Disclosure of the value of output tax charged on its invoices.
Total value of purchases on which input tax was paid.
Schedules of both input and output tax attached to the VAT returns, together with any adjustments made during the period, for bad debts, credit notes, etc.

Net VAT due i.e. the excess of output tax, with the evidence of payment of the VAT.
A signed declaration of completeness and correctness of the returns.

Due Date for Filing VAT Returns
The VAT returns must be filed on or before the 21st day of the month following that in which the transaction was made.
All MDAs and Oil & Gas Companies serve dual roles as payers and withholding agents of VAT, and are also required to file monthly returns not later than 21st day following the month of transaction using appropriate schedule.

TO BE CONTINUED NEXT WEEK.