Nigeria Tax Deadlines & Penalties 2026

Missing tax deadlines in Nigeria can result in significant penalties and interest charges. This comprehensive guide outlines all important tax deadlines, penalties for late filing, and how to avoid them under the 2026 Tax Act.

⚠️ Important:

Penalties and interest charges can add up quickly. It's crucial to file and pay your taxes on time to avoid unnecessary costs. Set reminders for important dates!

Individual Tax Return Deadlines

Tax Type	Deadline	Details
Personal Income Tax Return	March 31st	Must file your previous year's tax return by March 31st of the following year. Example: 2026 tax return due by March 31, 2027.
PAYE (Pay As You Earn)	21st of each month	Employers must remit PAYE deductions to FIRS by the 21st day of the following month.
Self-Assessment	March 31st	Self-employed individuals must file and pay by March 31st.

Business Tax Return Deadlines

Tax Type	Deadline	Details
Company Income Tax Return	6 months after year-end	Companies must file within 6 months after their accounting year-end. Example: December 31 year-end = file by June 30.
VAT Return	21st of each month	VAT-registered businesses must file and remit VAT by the 21st day of the following month.
Withholding Tax (WHT)	21st of each month	WHT must be remitted by the 21st day of the following month.
Education Tax	6 months after year-end	2% of assessable profit, due within 6 months of accounting year-end.

Penalties for Late Filing

Individual Tax Returns

Initial Penalty: ₦100,000 for late filing
Monthly Penalty: Additional ₦50,000 for each month the return remains unfiled
Interest: 10% per annum on outstanding tax from the due date
Example: If you file 3 months late, you'll pay ₦100,000 + (₦50,000 × 3) = ₦250,000 in penalties, plus interest on any tax due.

Company Tax Returns

Initial Penalty: ₦100,000 for late filing
Monthly Penalty: Additional ₦50,000 for each month the return remains unfiled
Interest: 10% per annum on outstanding tax from the due date
Additional Penalties: Directors may face personal liability for company tax debts

Late Payment Penalties

Interest Rate: 10% per annum on unpaid tax
Additional Penalty: 10% of the tax due if payment is delayed beyond 30 days after assessment
Compounding: Interest compounds monthly, so costs can escalate quickly

How to Calculate Penalties

Here's how penalties are calculated:

Base Penalty: ₦100,000 (one-time charge)
Monthly Penalty: ₦50,000 × number of months late
Interest: 10% per annum on tax due × (days late / 365)
Total: Base + Monthly + Interest

📊 Example Calculation:

If you owe ₦500,000 in tax and file 4 months late:

Base penalty: ₦100,000
Monthly penalties: ₦50,000 × 4 = ₦200,000
Interest (10% for 4 months): ₦500,000 × 0.10 × (120/365) = ₦16,438
Total penalties: ₦316,438
Total amount due: ₦500,000 + ₦316,438 = ₦816,438

This is why filing on time is crucial!

Requesting an Extension

If you need more time to file, you can request an extension from FIRS:

Submit Request: Write to FIRS before the deadline explaining why you need an extension
Provide Justification: Include valid reasons (e.g., awaiting documents, complex calculations)
Await Approval: FIRS will review and may grant an extension (typically 30-60 days)
File on Time: Even with an extension, penalties may still apply if you don't meet the extended deadline

Note: Extensions are not automatically granted. You must have a valid reason and apply before the deadline.

Important Dates Calendar 2026

Date	Deadline	Who It Affects
January 21, 2026	December 2025 VAT & WHT due	All VAT-registered businesses
February 21, 2026	January 2026 VAT & WHT due	All VAT-registered businesses
March 21, 2026	February 2026 VAT & WHT due	All VAT-registered businesses
March 31, 2026	2025 Individual Tax Returns due	All individuals
April 21, 2026	March 2026 VAT & WHT due	All VAT-registered businesses
June 30, 2026	2025 Company Tax Returns due (Dec 31 year-end)	Companies with Dec 31 year-end
Ongoing (21st each month)	Monthly VAT, WHT, PAYE remittances	Businesses and employers

How to Avoid Penalties

Set Reminders: Mark all deadlines on your calendar well in advance
Prepare Early: Start gathering documents 2-3 months before the deadline
File Online: Use FIRS e-Services portal for faster processing
Keep Records: Maintain organized records throughout the year
Pay on Time: Even if filing is delayed, pay estimated tax to reduce interest
Request Extension Early: If you need more time, apply before the deadline
Consult Professionals: Hire a tax consultant for complex situations
Use Our Calculator: Calculate your tax early to know how much you owe

What to Do If You've Missed a Deadline

Don't Panic: File immediately, even if late
File ASAP: The longer you wait, the more penalties accumulate
Pay What You Can: Make a partial payment to reduce interest charges
Contact FIRS: Explain your situation - they may offer a payment plan
Negotiate: In some cases, FIRS may waive or reduce penalties for first-time offenders
Get Professional Help: A tax consultant can help negotiate on your behalf

Payment Plans

If you cannot pay your tax in full, FIRS may allow a payment plan:

Application: Submit a written request to FIRS explaining your financial situation
Terms: Typically 3-12 months, depending on the amount owed
Interest: Interest continues to accrue during the payment plan
Conditions: You must make regular payments as agreed
Default: Missing payments may result in immediate demand for full payment

Key Takeaways

✅ Individual returns: File by March 31st each year
✅ Company returns: File within 6 months of year-end
✅ Monthly remittances: VAT, WHT, PAYE due by 21st of each month
✅ Late filing penalty: ₦100,000 + ₦50,000 per month
✅ Interest rate: 10% per annum on unpaid tax
✅ File early: Better to file early than face penalties

Calculate your tax liability early to prepare for filing deadlines.

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