As a contribution to its quota in mitigating the impact of the Coronavirus (COVID-19) pandemic on Taxpayers, the Lagos State Internal revenue Service (LIRS) following its announcement of the 3 month extension of deadline for filing of annual returns from March 31st to June 30, 2020 has in addition, introduced the implementation of certain measures to further alleviate the impact of the pandemic on Taxpayers. These measures include:
- Allowing (on a case by case basis) the installment payment of outstanding Liabilities to ease cash flow challenges that may affect taxpayers.
- Waiver of Penalty for late payment of liabilities under PAYE that were due during the state Lockdown period (March – May, 2020)
- Waiver of penalties due on late filing of 2020 annual tax returns (Form A)
- Waiver of Interest and penalty components of outstanding tax audit liabilities from 2009 to 2015 for entities that present and keep to a structured payment plan that terminates on or before December 31st, 2020.
- Grant of tax credit of 20% of cash and kind donations made for Covid-19 by resident individuals to LASG for the 2021 Year of Assessment which is subject to a cap of 35% of tax due.
- Increase in the tax payment channels making it easier, simpler and more convenient for all.
- Adoption of Video conferencing as the default mode for conduct of Tax Audit Reconciliation Committee (TARC) meetings in consonance with social distancing advisories from Government and other relevant authorities.
All taxpayers (Individuals and Businesses) resident in Lagos state are expected to take advantage of these palliatives by paying taxes and levies due to the state on time.
For assistance or further guidance on any of these measures, please send an email to clients@vi-m.com