12 Jul LIRS Grants COVID 19 Tax Incentives and Reliefs for Taxpayers (Individuals & Businesses) In Lagos State.
Lagos State Internal Revenue Service on behalf of Lagos State Government has issued series of tax incentives and reliefs for taxpayers (Individuals & Businesses) in the state.
In issuing the tax incentives, the Executive Chairman of LIRS, Mr. Ayodele Subair stated that the palliatives are measures put in place to mitigate the effects of Covid 19 pandemic on taxpayers and to ensure business continuity.
The tax incentives granted by the LIRS are:
- Extension of filing due of personal income tax return from March 31st to June 30, 2020.
- Waiver of penalty for late payment of taxes during the lockdown period (March – May 2020)
- Acceptance of instalment payment of outstanding liabilities on case by case basis to ease cash flow challenges of taxpayers.
- Waiver of penalty due on late filing of 2020 company’s annual tax returns (Form A)
- Waiver of interest and penalty on outstanding tax audit liabilities for the period 2009-2015 for companies that present and keep to payment plan that terminates on or before December 31, 2020.
- Granting of tax credit of 20% of cash and kind donation toward Covid 19 by resident individuals to Lagos State Government for 2021 year of assessment only subject to maximum of 35% of tax due.
- Enhancement of online payment platforms for easy and convenient tax payment.
- Adoption of Video conferencing as a default mode for Tax Audit Reconciliation Committee (TARC) meeting.
WYZE Comment: Issuance of tax incentives and reliefs by LIRS to individuals and businesses in Lagos State is a laudable development. We implore other States Internal Revenue Services to emulate LIRS by issuing tax incentives to taxpayers in their jurisdictions to cushion the effects of Covid 19 pandemic on individuals and businesses.
It is our hope that taxpayers in Lagos State will reciprocate LIRS gesture by prompt discharging of their statutory tax obligations.