How to apply to the Federal Capital Territory Internal Revenue Scheme (FCT-IRS) for tax filing

Every business or company owner in Nigeria is expected to file for tax at the Federal Capital Territory Internal Revenue Scheme as soon as they start operating their businesses or company. This is also applicable to every taxable individual.

There are 2 bodies that every taxable individual must register with; the Federal Inland Revenue Service (FIRS) and the applicable State Internal Revenue Service. Registration with the State IRS is still required even after registration with the Federal Inland Revenue Service (FIRS). 

PAYE tax, withholding tax, and other taxes imposed on Federal Capital Territory citizens are collected by the Federal Capital Territory Internal Revenue Scheme (FCT-IRS). Also, a state IRS may offer a predetermined format for the registration of new taxpayers.

Therefore, the focus of this article will be on how to register with the Federal Capital Territory Internal Revenue Service for tax filing.

Applying for tax filing at the Federal Capital Territory Internal Revenue Scheme 

In the Federal Capital Territory, there are several offices for Federal Capital Territory Internal Revenue Scheme. It is recommended for taxpayers file their taxes at the tax office that is located closest to them.

According to the residency rule, an employee’s PAYE is due to the local tax authority where they reside. Therefore, it is the responsibility of the employer to withhold and pay PAYE to the local tax authority, depending on where the employee resides.

Procedures for tax filing at the Federal Capital Territory Internal Revenue Scheme 

There are various stages involved in filing taxes at the Federal Capital Territory Internal Revenue Scheme. They include:

Step 1. Register with the Federal Capital Territory Internal Revenue Scheme for taxes.

Utilize the list on http://fctirs.gov.ng/locate-us/ to locate the FCT-IRS office that is closest to you.
The Federal Capital Territory Internal Revenue Scheme (FCT-IRS) will need a copy of the CAC certificate and a properly filled out non-individual tax registration form in order to construct a tax profile for a firm.
It will be an appropriately filled-out individual tax registration form in the case of an individual. If it is a business or employee tax registration form, it will be filled in collectively. The information for remitting tax will be sent by FCT-IRS after registration.

Step 2.Pay your monthly tax returns to the Federal Capital Territory Inland Revenue Service

On the tenth day of the month after salary payment, PAYE tax is payable. For instance, the tax on the employee’s July salary is due on August 10th.
Payment of income tax in advance is known as withholding tax (WHT). The withholding tax rate ranges from 5% to 10%, depending on the receiver and the kind of transaction.

Step 3. Pay your yearly tax returns

The gross wage and PAYE tax for each employee is included in the company’s yearly employer tax return (Form H1).

Individual Form A (Return of Income and Claim for Allowances and Reliefs): By March 31st, the employer must submit this form for each employee. In accordance with Section 41 of the Personal Income Tax Act of 2011 as amended, which mandates that all taxpayers file annual returns of their income for the purpose of tax assessment, between January 1 and March 31 to avoid penalties and interest, taxpayers are reminded to file their annual tax returns (FORM A).

Tax clearance certificate for the year: On behalf of its workers, a corporation must submit an application for a tax clearing certificate (TCC). Although there are no deadlines, the majority of taxpayers submit this after submitting Form H1.

In accordance with Section 41 of the Personal Income Tax Act of 2011 as amended, which mandates that all taxpayers file annual returns of their income for the purpose of tax assessment, between the first of January and the last day of March, taxpayers are reminded to file their annual tax returns (FORM A) in order to avoid penalties and interest.

On http://fctirs.gov.ng/downloads/, you may download copies of the registration forms, PAYE tax schedule, TCC form, Form H1, and Form A for Federal Capital Territory Internal Revenue Service.

An employer will take additional statutory deductions from employees’ wages as well. However, there are certain restrictions on this. Although it is not required for enterprises with two (2) employees, donations to pension funds and industrial training funds are two prominent forms. 

Visit this page to learn more about statutory deductions. Also, an overview of the PAYE tax system may be found in the Nigerian PAYE tax guide.


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