Self-employed & Freelancers
Tax obligations for independent workers
Registration Requirements
Self-employed individuals and freelancers must register with their State Internal Revenue Service (SIRS) within 6 months of starting business. You'll receive a Tax Identification Number (TIN) which is required for all tax transactions.
Taxable Income
Your taxable income is calculated as: Gross Income - Allowable Business Expenses
Allowable expenses include:
- Office rent and utilities
- Professional fees and subscriptions
- Equipment and software costs
- Marketing and advertising expenses
- Travel expenses (business-related)
- Depreciation on business assets
Filing Requirements
Annual Returns: You must file an annual tax return by March 31st of the following year, reporting your income and expenses for the previous tax year.
Monthly/Quarterly Payments: Depending on your income level, you may be required to make advance tax payments monthly or quarterly.
Record Keeping: Maintain proper records of all income and expenses, including receipts, invoices, and bank statements for at least 6 years.
Tax Rates
Self-employed individuals are subject to the same progressive tax bands as employees. Your tax liability is calculated on your chargeable income (after deductions) using the standard Nigerian PIT rates.