Does having PAYE deducted mean you skip your own return?

PAYE being deducted does not mean you skip your own tax return. The law still expects you to file one with your state, in your own name.

2 min readBy the Docufy editorial team

Quick answer

No. Having PAYE deducted from your salary does not replace your own annual return. Your employer files a return of its whole payroll, but every taxable person must file a return each year, even if no tax is due, and that duty falls on you personally, filed with the tax authority of the state where the employee lives.

PAYE alone enough?
No, a separate personal return is still due
Employer's return covers
The whole payroll, filed by 31 January
Your own return covers
You, filed by 31 March each year
Legal basis
the Nigeria Tax Administration Act 2025
On this page

"My employer already deducts PAYE, so I don't need to do anything else." It is one of the most common assumptions about personal tax in Nigeria, and it is not quite right.

The short answer

No, PAYE alone does not cover it. Your employer's monthly deduction and remittance is one duty. Filing your own annual return with your state is a separate one, and both exist at the same time.

It surprises people because PAYE genuinely does handle the money. The tax gets deducted, sent to the right authority, and shows up correctly on your payslip. What it does not do automatically is put a return in your own name on file with your state.

What your employer's return covers

Once a year, your employer files a return of everyone's pay, listing gross pay, deductions and tax for each member of staff, due by 31 January. Our guide to the employer's annual return deadline covers that filing in full.

That return covers the company's side of the job. It is filed under the company's name, not yours, so it does not stand in for a return in your own name.

The separate duty the law places on you

Every taxable person must file a return each year, even if no tax is due. This applies to you as an individual, on top of whatever your employer files. The return is due to the tax authority of the tax authority of the state where the employee lives, by 31 March each year.

This is not a Nigerian quirk. Many countries separate "tax withheld correctly at source" from "the taxpayer's own annual reconciliation," and Nigeria's system, in force from 1 Jan 2026, works the same way.

Both returns, side by side

Employer's return Your own return
Filed by The company You
Covers The whole payroll Just you
Deadline 31 January 31 March each year
Filed with The relevant tax authority The tax authority of your state of residence

Seeing them next to each other makes the gap obvious. One exists because the company withheld tax on your behalf. The other exists because the law treats you as the person ultimately answerable for your own tax affairs.

What to do if you have never filed your own

Start by registering with your state's tax authority if you have not already, since every taxable person must register and get a Tax ID. From there, look for your state's own online portal. Our state tax portal guides cover several states' own systems.

Filing a late first return is better than never filing one, though a late return can still carry a penalty, covered in the penalty for missing your return.

Where this fits with the rest of the series

For the mechanics of filing itself, see filing your individual annual tax return. For which state to file with, start with which state you pay personal income tax to.

Questions people ask

If my employer already remits my PAYE every month, why file again?

The monthly remittance and the annual return are two different duties. One moves the money; the other is your own record with the tax authority that you were assessed correctly for the year.

What happens if I never file my own return?

A missed deadline can bring a penalty, and a missing filing history can also surface later, for instance if you need a tax clearance certificate. See the penalty for missing your return.

Does this apply if I only have one employer and no other income?

Yes. The duty to file is not limited to people with complicated finances. A single salary and nothing else still means a personal return is expected.

Is this the same return my employer files?

No. Your employer's return is filed under the company's name and covers everyone on payroll together. Yours is filed under your own name.

Sources

1 more source

Last checked 27 Sep 2026. Fees and rules change; the agency that issues the document has the final word. See our editorial policy.

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