LIRS Urges Lagos Employers to Meet January 31 Tax Filing Deadline to Avoid Penalties
The Lagos State Internal Revenue Service (LIRS) has issued a stern reminder to all employers in Lagos to comply with statutory tax filing obligations as the January 31 deadline for annual returns approaches. The agency stressed that late or non-filing will attract significant penalties as outlined in the Nigeria Tax Administration Act (NTAA), 2025.
Mr. Ayodele Adebayo, Director of Personal Income Tax at LIRS, emphasized that January is a critical period in the tax calendar. He explained that employers must file detailed annual Pay As You Earn (PAYE) returns for all employees engaged in the previous year, whether they remain in service or have left the company. “January is a very critical month for tax compliance. Employers must submit comprehensive details of all employees,” Adebayo said.
Employers are required to submit both annual PAYE schedules and monthly tax deductions for each employee, including Withholding Tax (WHT), under Section 28 of the NTAA. Failure to comply by the statutory deadline of January 31 can attract penalties, starting at N100,000 for the first month of non-compliance, followed by N50,000 for each subsequent month, even if taxes were fully remitted.
Adebayo also highlighted that timely filing affects employees’ ability to obtain Tax Clearance Certificates. “Without these filings, employees will not be able to get their tax clearance certificates, regardless of how long they worked during the year,” he said. He further clarified that personal tax returns remain mandatory for individuals, even if their employer has filed PAYE on their behalf.
To support compliance, LIRS has transitioned to a fully digital filing platform, eliminating manual submissions. Over 10,000 companies have already started filing, with 7,000 completing the process successfully, while around 2,000 were flagged for errors. Adebayo urged employers to act early to avoid congestion, sanctions, and ensure accurate reporting, emphasizing that proper tax filing enhances transparency and supports government planning and public services delivery.
source: punch