Nigeria Sole Trader / BN — PITA Self-Assessment Return

Confirm the taxpayer is a Nigerian tax resident (domiciled in Nigeria or present ≥183 days) and determine entity type: sole trader (no CAC registration) or CAC Part B business name (BN). Establish the state of residence to identify the correct filing authority — LIRS for Lagos, FCT-IRS for Abuja/FCT, or the relevant State Internal Revenue Service for all other states. Rule out RC (limited company) structures, which are taxed under CITA/NTA 2025, not PITA.

Gather all source documents needed for the PITA computation: 12-month bank statements from all accounts (GTBank, Access, Zenith, UBA, First Bank, Kuda, OPay, etc.), invoices issued to clients, WHT credit notes (certificates) from clients who deducted withholding tax at 10% (professional fees) or 5% (contracts), prior-year PITA returns, and any pension / NHF / life insurance contribution receipts. Flag missing WHT certificates immediately — credits cannot be claimed without them.

Parse all bank statement narrations to identify business income (NIP CR, USSD credits, POS settlements, Paystack/Flutterwave payouts), other income (rental, investment), and exclusions (internal transfers, loan disbursements, stamp duty charges). Gross up platform settlement amounts using the payment processor dashboard. Aggregate all income sources to arrive at total gross income — the base used for both the CRA formula and the minimum tax floor.

Identify and quantify allowable business deductions under PITA: office rent, utilities (EKEDC/IKEDC/AEDC etc., business proportion), telecom (MTN/Airtel/Glo/9Mobile, business proportion), software subscriptions, professional fees, business travel (Air Peace/Arik, hotels), marketing, and staff costs. Capital expenditure (vehicles, computers, plant) must NOT be deducted directly — compute initial allowance and annual allowance per the PITA Fifth Schedule rates instead. Flag mixed-use items (home office, personal vehicle) for reviewer determination of business proportion.

Run the full PITA computation: (1) compute assessable income (gross income less allowable deductions plus other income), (2) apply the Consolidated Relief Allowance (CRA = higher of NGN 200,000 or 1% of gross income, plus 20% of gross income — applied to GROSS income, not net), (3) subtract other reliefs (pension contributions at minimum 8% of basic+housing+transport, NHF 2.5%, life insurance premiums, NHIA), (4) apply progressive rates 7%–24% per the PITA Sixth Schedule, (5) compare with minimum tax (1% of gross income) and pay whichever is higher, (6) deduct WHT credits (10% professional fees / 5% contracts) supported by certificates.

Prepare the annual self-assessment return for filing with the correct authority by the 31 March deadline (PITA ss.41–44). For Lagos residents, file on the LIRS eTax portal (lirs.gov.ng); for FCT/Abuja residents, file with FCT-IRS via FIRS TaxPro Max (taxpromax.firs.gov.ng); for other states, use the relevant State IRS portal. Pay any tax balance due by 31 March to avoid the 10% late-payment penalty plus CBN MPR interest. If a refund is due (WHT credits exceed tax), initiate the refund claim process with the relevant IRS.