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I need to understand staff tax.

Read the explanations about PAYE deductions and employer returns.

A starting point, not a complete checklist. These explanations come from Nigeria Tax Administration Act, 2025. Other laws and the details of your situation may also matter.

Draft explanations. Under editorial review; not yet approved for publication.

  1. Obligation

    Deduct and remit your staff's tax

    Employers must deduct employee income tax under section 51. Remittance is a separate obligation with penalties under section 107. This draft does not provide a universal PAYE remittance date because the statutory trigger and published tax-authority guidance need reconciliation.

    Conditions & practical details
    Who this applies to
    Every employer, and anyone who must deduct tax at source.
    How to use it
    Confirm the payroll remittance rules with the relevant tax authority before setting a deadline. The annual employer return is a separate obligation.
    When
    Section 107 specifies a 21st-of-following-month remittance penalty trigger, while current FCT-IRS guidance publishes a 10th-of-month PAYE due date. The applicable payroll regulations and tax-authority deadline must be resolved before this becomes a production reminder.
    If you don’t
    Failing to deduct costs 40% of the amount not deducted. Failing to remit means paying the tax, 10% a year on it, and interest; on conviction, up to three years in prison or a fine of the amount due plus up to 50%.
    Full explanation →ss. 51(6)–(7) and 107

  2. Obligation

    File your employees' PAYE return

    Employers must file a return for all employees' pay for the previous year by 31 January, showing each employee's gross pay, benefits, deductions and tax deducted.

    Conditions & practical details
    Who this applies to
    Every employer.
    How to use it
    Put 31 January on your calendar.
    When
    31 January each year
    If you don’t
    ₦100,000 for the first month late, then ₦50,000 for each further month.
    Full explanation →s. 14(1)–(2)

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