An efficient tax system depends on both competent tax representation and timely tax compliance by taxpayers.
Nigerian tax laws allow companies to appoint qualified tax
representatives (though not mandatory) while mandating individuals to file annual income tax returns,
reinforcing
voluntary
compliance and
statutory obligations.
Registration of Tax Agents
Every company is required to designate a representative or tax agent responsible for managing all of its tax matters, serving as the primary point of contact with the relevant tax authority and overseeing registration, filing of returns, responding to queries, facilitating audits, and ensuring compliance.
Where the appointed representative is a paid tax agent, the individual or firm must be an accredited tax agent, confirming the professional qualifications, technical competence, and regulatory approval to provide tax compliance and advisory services.
Appointing an accredited tax agent offers several benefits, including:

• Improved compliance with tax laws and regulations.
• Reduced risk of penalties arising from errors or late filings.
• Professional representation during tax audits and dispute resolution.
• Access to expert tax planning and advisory services.
• Enhanced
  corporate
  governance and
  stronger
  regulatory compliance.
  Income Tax Returns for Individuals
  Every taxable individual is required to file an annual return of income with the appropriate tax authority in the prescribed form, without any prior notice or demand, extending to every taxable person, including nonresidents liable to pay tax in Nigeria.
  The obligation to file exists whether or not tax is ultimately payable. Filing annual returns is a statutory requirement that promotes transparency and enables tax authorities to accurately assess an individual’s tax position.
  The annual income tax return must include:
• A duly completed self-assessment form.
• Details of income earned from all sources during the year preceding the year of assessment.
• Any other supporting information required by the relevant tax authority to determine tax liability.
  Failure to file within the prescribed period may expose taxpayers to penalties, interest, and other enforcement actions. Timely filing demonstrates good tax governance and reduces the risk of future disputes.
  Conclusion
  Requiring companies to appoint accredited tax agents and individuals to file annual income tax returns
  reflects Nigeria’s
  commitment
  to
  strengthening tax administration and encouraging voluntary compliance. Businesses benefit from engaging qualified tax professionals,
  while
  individuals must recognise that filing annual tax returns is a legal responsibility regardless of whether tax is payable, together enhancing transparency and accountability.