More Relief For Taxpayers as LIRS Implements Additional Tax Incentives

Taxpayers in Lagos, Nigeria’s economic hub and the epicenter of the coronavirus (Covid-19) disease are in for more relief, as the Lagos Internal Revenue Service (LIRS) has announced it is implementing additional incentives to cushion the harsh effects of the pandemic on businesses and residents, starting from July 16, 2020. The tax agency had previously announced a three-month extension of the deadline for filing of annual returns from March 31 to June 30, 2020, also as a measure to lessen the burden of taxpayers in the state. According to the executive chairman of LIRS, Ayodele Subair, “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. In addition, a waiver of penalties due on the 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. Subair said on Tuesday that in appreciation of taxpayers that have supported the state government in the fight against the pandemic, the LIRS 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 the tax due).”