#BounceExclusive: How To File Your PAYE And Withholding Tax Returns
This is in continuation of our series on Tax Thursday.
How To File For PAYE
If you are an employer, you are required by law to deduct and account for personal income tax deducted from the employment income of your employees, through the Pay-As-You-Earn, PAYE system.
PAYE tax must be paid on or before the 10th day of the month following the payment of salaries.
Tax returns must be filed within 90 days of the year accompanied with the following:
a) A) Form A to be completed by individual employee, showing total income and claims for allowances and relief.
b) B) Form H1, employer annual declaration, showing names of employees, earnings for the year, net tax deducted etc; and
C) Other documents as may be considered necessary or as may be required by the tax authority.
How To File For Withholding Tax Returns
For withholding tax returns, it must be filed monthly to the relevant tax authorities (State for withholding tax deducted on individuals and unincorporated entities, the Federal Inland Revenue Service, FIRS for deductions from companies).
Relevant documents to accompany the tax returns include:
1. Evidence of payment to an authorized bank and schedule of withholding tax deducted showing:
- period covered
- names of suppliers
- their addresses
- nature of supply
- gross amount
- withholding tax rate
- withholding tax amount and tax identification number, TIN, of the company making the remittance and those of the suppliers whose income have suffered withholding tax.