File Your Employers’ Annual Tax Returns

It is that time of the year when employers are required to prepare and file an annual tax return (Form H1) in respect of all emoluments paid to employees in its employment in the preceding year. Various State Internal Revenue Services (SIRS) have either issued public notices or requested employers to submit their annual tax returns in the format required and in good time.

Legal Basis

Based on Section 81(2) of the Personal Income Tax (Amendment) Act 2011, all employers are required to file an annual return with the relevant tax authority of all emoluments paid to its employees, not later than 31 January of every year in respect of all employees in its employment in the preceding year.

Further, Section 81 (3) posits that any employer that fails to fulfil this obligation is liable on conviction to penalty of N50,000 and N500,000 for individuals and corporates respectively.


Filing Requirements

The mode of filing the employers' annual tax return or Form H1 differs slightly across various SIRS in Nigeria. While some SIRS allows electronic filing, others require taxpayers to file their returns manually. Notwithstanding the filing method, when filing the employers’ annual tax returns, employers are to furnish the relevant SIRS with the following information;

  • Schedule of the total emolument paid to employees in the preceding year.
  • Schedule of PAYE deductions and remittances to the SIRS.
  • Schedule of withholding taxes remitted in the preceding year
  • Schedule of projected emoluments for the current year


Key takeaway

Employers are hereby reminded to file their annual tax returns with the relevant SIRS on or before the due date of 31 January 2022 to avoid the applicable penalty.

Should you require further clarifications regarding the employers’ annual tax returns or Form H1, do not hesitate to get in touch with us at Mazars Nigeria.