Connect with us

#Latest

See new compliance requirements for taxpayers in Lagos State

Published

on

See new compliance requirements from taxpayers in Lagos State

The Lagos State Internal Revenue Service (LIRS) has issued Public Notices pursuant to recent tax law changes, highlighting compliance requirements from taxpayers and other relevant parties resident in the state.

The relevant tax law changes include:

  1. The Capital Gains Tax (CGT) Act historically exempted gains on the disposal of Nigerian government securities, stocks and shares from CGT. The Finance Act 2021 has amended the CGT Act to introduce CGT on the disposal of shares, subject to certain conditions.
  2. The Minister of Finance (MoF) issued a Notice effective from 2 January 2012, exempting interest and other income earned from government, corporate and supranational bonds from PIT. The MoF Notice highlighted that the exemption was for a period of 10 years (i.e until 1 January 2022), except for FG bonds which will continue to be exempt. The 10-year period has now lapsed, and the LIRS communicated that the exemptions have expired.
 The LIRS Notice states that upon expiration of the MoF Notice on 2 January 2022, individuals and unincorporated entities are now liable to tax on income from bonds and short-term securities, except for FG bonds which remain exempt. However, this appears to be in contravention with PITA, as explained in the “Takeaway” section below.
How does this affect taxpayers resident in Lagos?
 
  • CGT In line with powers granted under PITA, the LIRS has appointed Stock Brokers and other Capital Market Operators as agents for the purposes of filing CGT returns on transactions involving individuals and other unincorporated entities (i.e beneficiaries) resident in Lagos.
  • Such returns are to be submitted to the LIRS and should include particulars such as the name of the investor, the date of disposal and the sales proceeds amongst others.
  • The returns must be submitted by June and December every year in line with the CGT Act. Beneficiaries are also required to submit returns by 31 March of the following year (i.e together with their PIT returns).
  • The Public Notice also highlights that the beneficiaries should make relevant CGT payments within 30 days of making the disposal. PIT
  •  The Public Notice highlights that eligible agents are required to deduct WHT on interest on short-term securities paid to beneficiaries.
  • Sums withheld should be remitted to the LIRS within 30 days of such deduction through the e-tax platform.
  • Beneficiaries should declare the relevant income in their annual PIT returns.

Add your voice

0 comments

People reading currently

Gates Foundation, UAE deploy $200 million for climate action, food systems innovation Gates Foundation, UAE deploy $200 million for climate action, food systems innovation
Agriculture3 months ago

Gates Foundation, UAE to deploy $200 million for climate action, food systems innovation

The fund will help smallholder farmers in sub-Saharan Africa and South Asia build resilience and adaptation to climate change. The...

Climate Finance Climate Finance
Dev. Finance3 months ago

Kenya, Nigeria named as targeted countries for climate-blended finance deals

Nigeria and Kenya have been identified as the most frequently targeted countries for climate-blended finance flows in the past three...

FuturizeU supports development of innovative healthcare products in Africa FuturizeU supports development of innovative healthcare products in Africa
Social Entreprenuership6 months ago

FuturizeU supports development of innovative healthcare products in Africa

Futurize and AstraZeneca are investing in social entrepreneurs who are developing innovative products that are addressing healthcare equity and early...

Banjul International Airport in Gambia Banjul International Airport in Gambia
Dev. Finance6 months ago

Saudi Fund for Development advocates Climate Change Mitigation, Social Infrastructure Investments in Africa

  The Saudi Fund for Development (SFD) has advocated for the preservation of heritage projects in Africa through initiatives such...

Catalyst Fund Team Catalyst Fund Team
Climate & Environment6 months ago

Catalyst Fund Raises First Round of $40 million investment in African Climate Startups

The Catalyst Fund has achieved the initial close of its $40 million fund for investing in climate startups in Africa....

Paystack CEO, Shola Akinlade, buys majority stake in Aarhus Fremad Paystack CEO, Shola Akinlade, buys majority stake in Aarhus Fremad
Sports11 months ago

Paystack CEO, Shola Akinlade, buys majority stake in Aarhus Fremad

A Danish football club, Aarhus Fremad announced on Tuesday that it has sold  55 percent of its shares to the...

MRI is increasing survival rate of women with breast cancer- PPC MRI is increasing survival rate of women with breast cancer- PPC
Climate & Environment11 months ago

MRI is increasing survival rate of women with breast cancer- PPC

PPC Limited, Nigeria’s leading engineering and infrastructure development company with footprints across Nigeria’s healthcare landscape, says that the advancement of...

Adeleke versus Oyetola Adeleke versus Oyetola
Policy & Regulation11 months ago

Appeal court upholds Senator Ademola Adeleke’s win in Osun

The Court of Appeal Abuja has overturned the ruling of the Osun State Governorship tribunal and has declared Senator Ademola Adeleke...

Lawmaker demands revamp of bank e-payment platforms Lawmaker demands revamp of bank e-payment platforms
Dev. Finance11 months ago

Lawmaker demands revamp of bank e-payment platforms

The members of the House of Representatives have demanded that the Central Bank of Nigeria (CBN) direct banks to revamp...

CBN to destroy naira notes worth N6tn CBN to destroy naira notes worth N6tn
Economy11 months ago

We’ve disbursed N20bn to alleviate cash crunch, CBN tells NLC

The Central Bank of Nigeria (CBN) met with the leadership of the Nigeria Labour Congress (NLC) in Abuja on Thursday,...

Ad Blocker Detected!

Advertisements fund this website. Please disable your adblocking software or whitelist our website.
Thank You!

you're currently offline