The Federal Capital Territory Internal Revenue Service (FCT-IRS) has called on private companies, government Ministries, Departments and Agencies (MDAs), and other employers of labour within the Federal Capital Territory (FCT) to submit their employee annual tax returns for the year 2024.
The acting Executive Chairman of FCT-IRS, Mr. Michael Ango, issued the reminder in a statement on Sunday in Abuja.
He emphasized that employers have until January 31, 2025, to comply with the directive.
According to the statement, signed by the Head of Corporate Communications, Mr Mustapha Sumaila, the returns are to be filed using the forms prescribed by the FCT-IRS.
“The PITA Act mandates all employers of labour in the FCT to file annual returns of all emoluments paid to their employees and the total taxes of the preceding year, not later than Jan. 31 of every year,” Mr. Ango explained.
This directive aligns with the provisions of Section 81 of the Personal Income Tax Act (PITA) 2011 (as amended) and the Pay As You Earn (PAYE) Regulations.
Legal implications for non-compliance
Mr. Ango highlighted the legal obligation for all employers to submit these returns and warned that failure to comply would attract penalties and other sanctions.
“The best form of compliance is voluntary, which the FCT-IRS expects from all taxpayers in the FCT.
I, therefore, enjoined all private organisations, MDAs, government-owned enterprises, including sole proprietorships who are employers of labour in the FCT, to comply with their tax obligations to avoid sanctions,” he noted.
The acting chairman emphasized that compliance with tax obligations is critical not only to avoid sanctions but also to support the development of the Federal Capital Territory.
He noted that the contributions of taxpayers would bolster the efforts of the FCT Minister, Mr Nyesom Wike, in transforming the territory into a modern city.
“More importantly, the support will contribute to the development of the FCT and the efforts of the Minister of FCT, Mr Nyesom Wike, to transform the territory into a modern city,” he added.
What you should know
The agency had also issued a mandate for employers within the FCT to comply with the provisions of the Personal Income Tax Act (PITA) regarding the Pay-As-You-Earn (PAYE) tax.
- Employers, including corporate bodies, MDAs, FCTA SDAs, NGOs, and business entities, are required to deduct PAYE taxes from employees’ emoluments and remit them monthly to the FCT-IRS by the 10th of the following month.
- Non-compliance attracts a penalty of 10% and interest at the prevailing Central Bank of Nigeria rate, currently 26.75%.
The FCT-IRS has clarified that MDAs on the Integrated Payroll and Personnel Information System (IPPIS) must file their returns independently, as IPPIS does not handle this on their behalf.
