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Welcome to Daily Reality NG, where we break down real-life issues with honesty and clarity.
I’m Samson Ese, founder of Daily Reality NG. I’ve been blogging and building online businesses in Nigeria since 2016, helped over 4,000 readers start making money online, and my sites currently serve 800,000+ monthly visitors across Africa.
Personal Income Tax (PIT) and the FIRS Filing Process for Nigerian Freelancers – 2025 Complete Guide
Reading time: 14 minutes | Published: November 24, 2025
Last year, I received over 87 WhatsApp messages from freelancers who got “tax demand notices” from FIRS for incomes they earned in 2020–2023. Many of them never knew they were supposed to file. Some paid heavy penalties because they ignored the letters.
Truth be told, if you earn more than ₦500k per month as a freelancer in Nigeria (whether from Upwork, local clients, or crypto payments), FIRS already sees you as a taxable person. This guide is the exact process I personally use (and teach my community) to stay compliant without paying one kobo extra.
Table of Contents
- Who Must Pay Personal Income Tax in Nigeria?
- 2025 PIT Tax Rates & Reliefs Every Freelancer Must Know
- Allowable Expenses You Can Deduct (Save Thousands)
- Step-by-Step FIRS Tax Filing Process for Freelancers
- How to Register & Get Your Tax Identification Number (TIN)
- Filing Deadlines & Penalties in 2025
- How to Get Tax Clearance Certificate (TCC) as a Freelancer
- Common Mistakes That Trigger FIRS Audit
1. Who Exactly Must Pay Personal Income Tax in Nigeria?
According to Section 2 of Personal Income Tax Act 2011 (as amended), any individual resident in Nigeria for 183 days or more in a year and earning income is liable.
- Full-time remote workers for foreign companies
- Upwork, Fiverr, Toptal freelancers
- Graphic designers, writers, programmers, virtual assistants
- Crypto traders who convert to naira
- Content creators earning from YouTube, TikTok, sponsorships
2025 Consolidated Relief Allowance & Tax Table (Current)
| Annual Income (₦) | Rate | Tax Payable |
|---|---|---|
| First ₦300,000 | 0% | Nil |
| Next ₦300,000 | 7% | ₦21,000 |
| Next ₦500,000 | 11% | ₦55,000 |
| Next ₦500,000 | 15% | ₦75,000 |
| Next ₦1,600,000 | 19% | ₦304,000 |
| Next ₦3,200,000 | 21% | ₦672,000 |
| Above ₦5,000,000 | 24% | Progressive |
Plus Consolidated Relief Allowance: ₦200,000 + 20% of earned income (whichever is higher) + 1% of gross for NHF & Pension.
Allowable Expenses You Can Legally Deduct
These ones reduce your taxable income sharply:
- Laptop/phone (depreciate over 3 years)
- Internet subscription
- Co-working space or percentage of rent if you work from home
- Software subscriptions (Adobe, Canva Pro, Grammarly, etc.)
- Professional courses & certifications
- Electricity/generator fuel used for work
- Bank charges on business account
Step-by-Step FIRS Filing Process (2025 Portal)
- Visit taxpro.max.ng
- Register or log in with your TIN
- Select “File Return” → “Individual”
- Choose Assessment Year (e.g. 2024 returns filed in 2025)
- Fill Form A (self-assessment)
- Attach evidence of expenses (PDF)
- Generate Assessment → Pay via Paystack/Remita
- Receive e-receipt and acknowledgment
How to Get Your TIN in 10 Minutes (Free)
Go to JTB website → Individual Registration → Fill details → TIN is generated instantly. Use same TIN for state tax (LIRS in Lagos) and FIRS.
2025 Deadlines & Penalties
- March 31 – File returns for previous year
- ₦50,000 + 10% interest per annum if you file late
- ₦500,000 penalty for deliberate omission
How to Apply for Tax Clearance Certificate (TCC)
After filing and payment → Apply on same TaxPro portal → Processing takes 3–14 days → Download PDF TCC (now accepted everywhere).
Red Flags That Trigger FIRS Audit
✘ Claiming 90–100% expenses (unrealistic)
✘ No record of income for 3+ years
✘ Large dollar inflows with zero tax filing
✘ Using personal account for all client payments
Frequently Asked Questions (FAQ)
Do I pay tax if client pays me in dollars?
Yes. Once money enters Nigeria or you convert to naira, it becomes taxable.
Can I use my BVN as TIN?
No. BVN ≠ TIN. You need separate TIN from JTB/FIRS.
Will FIRS come after me if I earn less than ₦30m?
Yes. PIT applies from the first naira above reliefs. Many freelancers earning ₦800k–₦2m monthly are already in 19–24 percent bracket.
Can I pay in installments?
Yes. Apply for installment plan on TaxPro Max if you owe above ₦500,000.
Key Takeaways
- Every freelancer earning above ₦300,000 per year must file
- Use TaxPro Max portal – it’s free and fast
- Keep receipts for all business expenses
- File before March 31 to avoid ₦50,000+ penalty
- TCC is now 100 percent online
Related Articles on Daily Reality NG
- How to Open & Use Domiciliary Account in Nigeria 2025
- 7 Apps That Pay Real Cash to Nigerians 2025
- Tax Strategies for Nigerians Earning in Dollars
Was this article helpful? Drop your questions in the comment section or send me a WhatsApp message – I reply personally.
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