Wednesday, Jan 27th 2021 7:22 AM

Market Digest Nigeria


LIRS offers more tax incentives to taxpayers

Lagos State Internal Revenue Service

Lagos State Internal Revenue Service (LIRS) Tuesday said it had set in motion the implementation of a tax relief scheme that would deliver further incentives and buffers to persons and businesses as they grapple with the impact of the coronavirus pandemic on the state economy.

Lagos State Internal Revenue Service

The latest intervention comes roughly eight weeks after government extended annual tax returns filing window a quarter forward from 31st March to 30th June in the last week of May.

“LIRS shall allow on a case by case basis, payment of outstanding liabilities in instalments 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.

“In addition, a waiver of penalties due on late filing of 2020 annual tax returns known as ‘Form A’ will be granted. A remarkable 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,” Ayodele Subair, LIRS Chairman said in a statement signed by the agency’s Corporate Communications Head, Monsurat Amasa and seen by Ripples.

A twenty per cent tax credit on all cash and kind donations contributed towards supporting the campaign against the coronavirus crisis by Lagos residents is in the pipeline, LIRS said.

The fiscal authority however limited to the 2021 assessment year, subject to a 35% ceiling of tax due.

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