The Lagos State Internal Revenue Service (LIRS) has issued a crucial reminder to all employers within its jurisdiction regarding their annual tax return filing obligations for the 2024 financial year. The deadline for filing these returns is January 31, 2025, as stipulated by the Personal Income Tax Act, Cap P8 LFN 2004 (as amended). This announcement, made by LIRS Executive Chairman, Dr. Ayodele Subair, underscores the importance of timely compliance and the potential consequences for non-adherence. He emphasized that fulfilling this legal obligation is not merely a procedural formality but a critical component of the state’s fiscal health and development. Failure to comply, he warned, could result in statutory sanctions, including penalties, as outlined in the governing legislation.
The Personal Income Tax Act, Cap P8 LFN 2004 (as amended), specifically Section 81, mandates employers to furnish comprehensive annual returns detailing all employee emoluments. These returns must encompass not only the salaries and wages paid but also all other forms of compensation provided to employees. Critically, they must also include a record of all taxes deducted from employee earnings and subsequently remitted to the relevant tax authorities. The deadline for submitting these returns is January 31st of each year, covering the income and tax deductions of the preceding year. This systematic and timely reporting ensures transparency and accountability in tax administration, enabling the government to accurately track revenue streams and allocate resources effectively.
Dr. Subair’s message strongly encourages employers to prioritize the filing of these returns to avoid incurring penalties for late submission. He highlighted the dual benefits of timely compliance: adherence to the law and contribution to the state’s financial planning and sustainability. Accurate and timely reporting provides the government with the necessary data to effectively manage public finances, allocate resources to essential services, and plan for future development initiatives. This, in turn, contributes to the overall economic stability and growth of Lagos State.
The LIRS has implemented a significant change in its tax return filing process, transitioning to a fully digital system. Employers are now required to file their annual returns exclusively through the LIRS e-Tax portal (https://etax.lirs.net). Manual submissions are no longer accepted, reflecting the LIRS’s commitment to modernizing its operations and enhancing efficiency. Dr. Subair described the e-Tax platform as a secure and user-friendly online system designed to simplify the filing process and facilitate compliance for employers. The online platform offers several advantages, including automated calculations, error reduction, and secure data storage, thereby streamlining the tax filing process for employers.
In addition to emphasizing the mandatory use of the e-Tax portal, Dr. Subair highlighted the importance of including the Payer ID of all employees in the submitted returns. The Payer ID is a unique identifier assigned to each taxpayer, enabling the LIRS to accurately track tax payments and reconcile them with individual employee records. Employees who do not yet possess a Taxpayer ID are urged to generate one promptly on the e-Tax platform to avoid any disruptions or delays in the filing process. This step is crucial for ensuring that all employee income and tax deductions are accurately recorded and reported to the LIRS.
To further support employers in meeting their tax obligations, the LIRS has made its staff available at various offices across the state to provide guidance and assistance. Employers who require assistance with navigating the e-Tax portal, understanding the filing requirements, or addressing any other tax-related concerns are encouraged to reach out to LIRS personnel. This proactive approach demonstrates the LIRS’s commitment to facilitating compliance and ensuring a smooth and efficient tax administration process. Dr. Subair concluded his message by urging all employers to take prompt action to meet the January 31, 2025 deadline and fulfill their tax obligations, contributing to the financial well-being of Lagos State.
