In accordance with section 41(1) and section 81(2) of personal income tax Act 2011 as amended, every entity is expected to file annual income returns of its employee to the relevant internal revenue service. The filing relates to salaries and tax paid in the previous year.
The employer been an agent of the government is expected to deduct and pay paye on behalf of its employee. The form used for this filing is called FORM H1, part of its content includes;
- Name of the entity filing the returns
- Year under consideration
- Company payer ID
- S/N of staff
- Name of each staff
- Nationality of each staff
- Each staff payer ID
- Annual Gross salary of each staff
- Tax Deducted from each staff
In addition to the above, the entity is also expected to send its payroll for the current year to the Internal Revenue
This returns is to be filed at the relevant internal revenue service on or before 31st January of every year. Failure to file as at when due attracts a penalty of N 500,000.00.
We advise timely compliance