Lagos Taxpayers Get Incentives

The Lagos State Internal Revenue Service (LIRS), has commenced the implementation of additional reliefs and measures to further ease the impact of the pandemic on taxpayers in the state.

The incentives are sequel to the agency’s initial three-month extension of the deadline for filing of annual returns between March 31 and June 30, 2020.

Mr. Ayodele Subair, the Executive Chairman, LIRS, said: “the following measures are to be implemented to further ease the impact of the pandemic on our esteemed taxpayers in Lagos state: LIRS shall allow on a case by case basis, payment of outstanding liabilities in installments to ease cash flow challenges that may affect taxpayers.

Taxpayers are to enjoy a waiver of penalty for late payment of liabilities under PAYE (Pay As You Earn) that was due during the period of March-May, 2020 when the State was under COVID-19 lockdown.

He said a waiver of penalties due on late filing of 2020 annual tax returns known as ‘Form A’ will be granted, adding that a waiver of interest and penalty on liabilities arising from 2009 to 2015 tax audit for taxpayers who can pay up on or before December 31, 2020 will be implemented.

He added that the agency will be granting tax credit of 20% of all cash and kind donations made towards COVID-19 by individuals resident in the state for the 2021 Year of Assessment (subject to a cap of 35% of tax due).”

He further announced that additional payment channels have been opened up to make payment of taxes easier, simpler and more convenient for all.

He, however, enjoined all businesses and individuals resident in Lagos State to take advantage of these additional palliatives and reciprocate the kind gestures of Lagos state government by discharging their civic responsibilities through prompt payment of all taxes and levies due to the state.