irs.lg.gov.ng Pay As You Earn & Direct Assessment Nigeria : Lagos State Internal Revenue Services

Organization : Lagos State Internal Revenue Services
Type of Facility : Pay As You Earn & Direct Assessment
Country: Nigeria

Website :
http://www.irs.lg.gov.ng/tax-types/pay-as-you-earn/
http://www.irs.lg.gov.ng/tax-types/direct-assessment/

Pay As You Earn :

Personal Income Tax Act imposes the duty to deduct appropriate tax from the total emolument of employees and remit same to the relevant tax authority. Every Employer of Labour is expected to:
Collect Tax Form A for distribution to the employees.

Related : Lagos State Internal Revenue Services Capital Gain & Withholding Tax Nigeria : www.statusin.org/8985.html

Certified the correctness of all salaries and allowances declared in the forms by their employees to ensure that correct reliefs are granted.

Returns of completed Ta x Forms A to the relevant tax authority.

Return all Tax deduction Cards (TDC) used in the operation of the PAYE Scheme and the End of the Year Returns should be made to the relevant tax authorities not later than January 31st of the following year.

Where it is operationally possible and for ease of PAYE scheme process Lagos State Internal Revenue Service (LIRS) encourage employers of Labour to submit the total emolument of their employees en-bulk using an agreed spread sheet format.

For detailed information on reliefs and allowances and tax rates please consult LIRS booklet on the Guidelines for the operation of Pay as You Earn, copies of which have been distributed.

Direct Assessment:
All individuals, businesses entities, communities, families, executor, trustee and self employed who receive or derive income in form of gain or profit either from trade, business profession or vocation within or outside Nigeria shall be liable to direct assessment. All tax payers falling within this category should file the returns of their income and claims for reliefs and allowances relating to the preceding year within 90 days from the beginning of every year. The tax authority will assess the taxable person thereafter.

FAQ :
What is withholding tax?
Withholding Tax is the specified amount deducted at source from payment accruing or made to individuals or corporate entities in respect of income receivable for service(s) rendered or from investment and remittance of same to the Relevant Tax Authority in line with the provisions of Personal Income Tax (PITA) and Companies Income Tax Acts (CITA)

Is Withholding Tax another form of Tax?
Yes. It is another form of tax but simply an advance payment of tax, as the tax deducted at source can be set-off against any subsequent tax liability payable on such income by the recipient (tax payer).

Do I have a duty to deduct and remit withholding taxes?
Yes. You are a collecting agent of Government. Whenever you or your firm pays an individual or corporate entity any of the under listed, appropriate withholding tax must be deducted and remitted to the Relevant Tax Authority (State Internal Revenue Service or Federal Inland Revenue Service).

What are the services/payments on which withholding taxes must be deducted?
Withholding Taxes must be deducted from payments due to corporate bodies and individuals on Rent, Commission, Management / Professional Fees, Consultancy Fees, Technical Service, Dividend, Directors’ Fees, Agency Arrangements/Agreements, Tenancy Agreement Dividend, Supplies.

Contact Address:
Address:
Lagos State Internal Revenue Services
The Good Shepherd House,
Block H,Plot H1,CBD,
Alausa,Ikeja,Lagos

Contact Details:
08082572444
08059889830, 07034954595
info@irs.lg.gov.ng