The problem?

Not all of them are true.

Some tax myths have been repeated for so long that people accept them as facts. Unfortunately, believing them can lead to poor financial decisions, missed compliance obligations, or unnecessary penalties.

Here are seven of the most common ones.

Myth 1: Once I pay VAT, I don’t have to worry about other taxes.

Fact: VAT is only one part of Nigeria’s tax system.

Depending on your circumstances, you may also have obligations relating to Personal Income Tax (PIT), Company Income Tax (for registered companies), Withholding Tax, or other applicable taxes.

Paying VAT doesn’t automatically settle every other tax obligation.

Myth 2: I don’t earn enough to keep financial records or file taxes.

Fact: Good record keeping isn’t only for large businesses.

Whether you earn ₦100,000 or ₦5 million a month, keeping proper records of your income, expenses, invoices, and receipts helps you understand your finances and makes tax compliance much easier.

The earlier you build the habit, the better.

Myth 3: Using multiple bank accounts makes my income invisible.

Fact: Having several bank accounts doesn’t remove your tax obligations.

If anything, it can make your finances harder to manage when your records are scattered.

Organisation matters far more than the number of accounts you use.

Myth 4: Freelancers who earn through Upwork don’t need to file Nigerian taxes.

Fact: Receiving payments through an international platform doesn’t automatically remove your Nigerian tax obligations.

Your tax residency, where your income is earned, and the applicable tax laws determine your obligations, not the platform that pays you.

Myth 5: If I’m paid in dollars, my income isn’t taxable in Nigeria.

Fact: The currency you’re paid in doesn’t determine whether your income is taxable.

What matters is your tax residency and how Nigerian tax laws apply to your income.

Myth 6: Tax filing is only for registered companies.

Fact: Many freelancers, creators, consultants, remote workers, and self employed professionals also have tax obligations.

You don’t need to own a registered company before tax compliance becomes relevant.

Myth 7: I’ll organise my records when tax season arrives.

Fact: This is one of the most expensive mistakes people make.

By tax season, many people are searching through screenshots, bank alerts, emails, invoices, and WhatsApp chats trying to piece together months of transactions.

Keeping your records organised throughout the year makes tax filing much simpler.

Final Thoughts

Tax myths don’t just create confusion. They can cost you money.

The best way to stay compliant isn’t by relying on what you’ve heard. It’s by understanding how the rules apply to your situation and keeping accurate financial records throughout the year.

At LessaTax, we believe tax readiness starts long before filing season. Staying organised today makes compliance much easier tomorrow.

Learn more and request early access at https://lessatax.ng/request-access

Which tax myth have you heard the most?

Let us know in the comments.