Personal Income Tax
How many tax stations those LIRS have?
39 Tax Stations.
Which type of taxes does LIRS collect?
1.Personal Income Tax from all residents of Lagos State 2.Witholding Taxes on all business/economic activities involving a second party who is not a corporate entity 3.Business Premises levy from all businesses and companies operating within the state (N10,000 registration and N5,000 renewal annually) 4.Development Levy from all individuals (N100 per head/yearly) 5.Sales Tax 6.Consumption Tax.
What will i have to show as evidence of tax payment?
Tax payment evidences are 1.You can obtain an Electronic Tax Clearance Certificate issued by LIRS 2.Receipt of payment issued by LIRS through Alpha Beta Consulting Ltd.
Where and how do i pay my taxes and obtain my e-tcc
All payments (cash and cheques) must be paid directly to any of the designated banks, while you can obtain your e-tcc through the same bank and/or any LIRS office.
How long will it take to obtain e-tcc
72 hours after payment.
Why is the amount of taxes payable in Lagos State so high
Taxes payable in Lagos State is not different from that of other State as all States Internal Revenue operate under the same Constitutional Provisions and Tax Laws. Current Law in use for Personal Income Tax is PITA 104 of 1993.
How do i confirm if taxes deducted from my monthly emoluments are remitted to the State Govenment
You can officially obtain information on all taxes paid on your behalf through the Executive Chairman of LIRS.
Is it neccessary for full time house wife and other jobless persons to pay tax to Lagos State Government
The position of the law is that all adult from the age 18 and above must pay Personal Income Tax except those exempted by the law as stipulated in the Third Schedule of PITA 104 of 1993.
What is the difference between PAYE(Pay As You Earn) and Direct Assessment
PAYE and Direct Assessment are two ways of assessing individuals to tax. PAYE is for individuals under paid employment and Direct Assessment is for Self Employed individuals.
Can i use witholding taxes deducted on me to offset my Personal Income Tax liability
Yes, Witholding Taxes is recognized as part of taxes paid and can be net off from liability assessed for the year and balance is paid.
What is Self Assessment
It is the ‘do it yourself’, easier and convenient approach recently introduced by LIRS which enable a new tax payer to assess him/herself, make payment through any of the designated banks and obtain his/her E-TCC without visiting any tax office or officer.
Can everybody pay under Self Assessment Approach
No, for continuity and adequate record keeping, Tax payers who have files at any LIRS office should approach the same office for proper assessment on yearly basis. This is important for proper coordination.
How much do i pay as a processing fee, each time i obtain a e-TCC
There is no need to pay any amount of money as processing fee before obtaining your Electronic Tax Clearance Certificate.
Under "Self Assessment" do I need to pay any processing or bank charge at the bank
NO, You don’t have to pay any charge to process your E-tcc at any bank. The banks’ commission is paid by the State Government through LIRS.
Is sales tax the same as Value Added Tax(VAT)
NO, VAT is collected by Federal Government through FIRS while Sales Tax is collected by State Internal Revenue Boards
Who is an expatriate
An expatriate is a non Nigerian with foreign travelling document who only work and Receive income or do business in Nigeria.
What is the meaning of Informal Sector
A person who operate under any unorganized business sector e.g Artisans, Market Men and Women belong to the informal.
How much tax do they pay
They are taxed at lower rate due to nature of their business. This is a means of encouragement on the part of the State Government.
Must I register with a tax office before making any payment
No, you may decide to pay via any of the designated bank without registration at any tax office.
Is tenement rate the same as land use charge i.e Property Tax
NO, but all tenement levy/charge is to be paid under Land use Charge. This is to avoid double taxation.
Can I pay my taxes to any bank
No, you have to identify designated banks approve by the state government which collect revenue on its behalf.
What do I do if my employer is not remitting my taxes deducted
You report immediately when you discover such act to the Executive Chairman LIRS through a petition or an official letter
Do I need to show proof of tax payment in all transactions with Lagos State
YES, except for related services
Do I have to pay tax as a pensioner
No, but you need to obtain a pensioner’s tax clearance through the Personal Income Tax Unit at LIRS headquarters
I don't have any income must i pay tax
The position of the law is that all adults who is 18 and above and not a full time Student must pay personal income tax. However an individual may depend on the Legal institutions to prove his/her case.
Do I pay tax on my gratuity
No, the Nigerian tax law has exempted taxes on pension and gratuity.