Tax audit and tax productivity in lagos state, nigeria emerald insight. Brief procedures for registration of private schools in lagos state building. Value added tax vat is a tax imposed on the supply of goods and services. Impact of tax reforms on revenue generation in lagos state. The main objective of creating the etcc is to remove all loopholes and block all leakages in the tax generating system. Companies income tax cit petroleum profit taxppt value added tax vat. Internally generated revenue in lagos state subsequently increased from 600 million in 1999, to 22 billion in 2015, and n341 billion in 2017. The lagos state internal revenue service lirs issued a public notice on. An illustration of this is if you sell shoes for n10, 000, the vat chargeable on that is 7. You will be given a tax clearance certificate that is signed by an inspector of taxes. The cost of a tax consultant differ for small businesses. Matog limited sells a collection of textbooks on tax law and tax accounting books in nigeria. List of agencies and their codes just another lagos.
The tax clearance certificate is usually for the 3 years preceding your application. Law books sellers in nigeria tax law books in nigeria. The lirs also introduced personal electronic tax clearance cards etcc, the first of its type in the country. Your tax consultant will then submit your documents with the firs.
The government of lagos state seems to be currently in the eye of the storm over its introduction of a law, a property tax as it were, known as the land use charge act of 2018, which repeals a. Real estate taxes lagos nigeria lagos property taxes. The steps that must be followed at lagos state ministry of home affairs include the followings. The lagos state, internal revenue service, introduced a new, faster and easier way of issuing a tax clearance certificate tcc which is called the electronic tax clearance certificate etcc. Tax, simply is a charge imposed by governmental authority upon property, individual, or transaction, to raise money for public. Seth consulting latest taxation textbooks personal. The preferable type of building is a purposebuilt bungalow building with either a u or an l shape that would enhance adequate ventilation and space for sports and games. Tax administration and revenue generation of lagos state. This is the body responsible for collecting revenue on behalf of the the lagos state government. The money lending law of the various states in nigeria regulates money lending business operation. How to start a money lending business in nigeria sme media.
Taxpayers can now process their tax clearance certificate accordingly. Dec, 2016 lirs enjoins corporate organizations and individuals to comply with the tax laws in consonance with section 82 of the personal income tax act as amended, the lagos state internal revenue service lirs wishes to formally notify the public of its intention to commence the prosecution of tax evaders and offenders in lagos state beginning from. Revenue building, oke mosan, abeokuta, ogun state email. Lagos state revenue administration law state treasury officesto.
Tax clearance for the individual applicant or corporate body. Tax computation,auditing of companys books to check level of compliance. It replaces the old paper and manually processed tax clearance certificate tcc. Procedure for obtaining money lending license in nigeria lagos.
Tax clearance of the individual or corporate bodyobtained from federal inland revenue service firs and if its a new company provide proof that you are a registered tax payer f. Hotels to be licensed and subject to tax by lagos state any building used as a guest house, inn, lodge, motel, tavern, night club, restaurant, event. Pay as you earn paye certificate, tax clearance of at least two 2 of its directors, and evidence of payment of company taxes. Real estate investment companies approved by the securities exchange commission to operate as a real estate investment scheme in nigeria will be exempt from income tax on rental income and dividend income earned in a financial year will be exempt from income tax provided that at least 75% of such income are distributed within 12 months. Threeyear tax clearance for at least 2 directors of the company where the applicant is a company.
Ogun state internal revenue service official website. By letter dated 1 december 2000, the lagos state government informed nigerian bottling company plc of the reintroduction of sales tax in lagos state adding that the tax rate shall be 5% flat on goodsservices produced in or brought into the state. In 1999, the bola tinubu administration in lagos state had sought to reform the tax process in the state through the introduction of electronic payments. Lagos state internal revenue service, local government, federal government lirs tax collection 0 700 22555477. Lirs enjoins corporate organizations and individuals to comply with the tax laws in consonance with section 82 of the personal income tax act as amended, the lagos state internal revenue service lirs wishes to formally notify the public of its intention to commence the prosecution of tax evaders and offenders in lagos state beginning from. As a selfemployed tax payer in need of tax clearance, one can obtain the electronic tax clearance certificate by duly completing and submitting the selfassessment form obtained from any branch of the lagos state government revenue collecting banks. Be it enacted by the house of assembly of kaduna state as follows. But my question is what if i live abroad and dont have a tax clearance for the state of lagos.
How to calculate the price of a c of o and governors. Lagos state internal revenue service lirs finesse blog. How to calculate the price of a c of o and governors consent in lagos yourself by. Self employed individuals are expected to file annual returns annually and pay the taxes due. The property registration tax are those real estate taxes that are required to be paid when registering your ownership title with the lagos state government.
Chapter 18 tax clearance certificate chapter 19 tax evasion, tax avoidance, artificial transactions and back duty investigation chapter 20 tax offences and penalties. How to obtain an income tax clearance certificate for your. The main aim of the lirs is to make lagos state less dependent on allocations from the federal government by designing its tax collection system and implementing a self. Bimpe daniel assistant revenue officer lagos state. Check how to get a money lenders license in lagos state, nigeria. According to firs there are nine9 types of taxes in nigeria. The lagos state internal revenue service lirs has constantly been on the move to increase. Aug 12, 20 procedures for school registrationapproval with lasg brief procedures for registration of private schools in lagos state building. Lagos state internal revenue service introduces new tax forms.
One of the alltime bestselling nonfictional books, the 7 habits of highly effective. Under companies income tax act you have to pay companies income tax if you are a resident or nonresident company incorporated in nigeria. Although i have one for the state of georgia in the us. Olufolarin ogunsanwo made this known on tuesday march 8 at a press conference held at lagos press centre, alausa, ikeja in the company of the house committee chairman on finance, lagos state house of assembly, honorable oluyinka ogundimu, lagos state commissioners for finance, mr. Hotels to be licensed and subject to tax by lagos state any building used as a guest house, inn, lodge, motel, tavern, night club, restaurant, event centre and any other place for the sale of food and drink. Shelze consulting was very helpful in ensuring that we got our tax clearance certificate in good time olawale james director,cnt limited shelze consulting helped me understand what capital was required to start my business and how long it would take for me to recover my investment. Mar 09, 2016 the commissioner, who disclosed that the ministry of justice had established a rapid tax prosecution unit to aid the lagos internal revenue service lirs in its drive to collect taxes, added that the unit would work closely with the revenue courts, which the chief judge of lagos state recently agreed to set up. The etcc is a project embarked upon by the lagos state government to remove the abuses, which characterised the administration of the old tcc in. Consumption tax law the law the lagos state governor signed into law on 22 june 2009, a law to impose tax on goods and services consumed in hotels, restaurants and event centres within the territory of lagos state and vested the power of administration assessment and collection in the lagos state lnland revenue service lirs. This property taxes are based on assessment of your propertys worth as at the time of the purchase. Employers must begin deducting tax from the salaries and wages of their employees after 6 months of the company commencing business operations. Students, accountants, lawyers, judges, knowledgeseekers, business people, entrepreneurs, management and companies who require tax knowledge and or seek compliance with our tax law will find us a friend.
Lagos state and the politics of taxation business today ng. The lagos state government electronic banking system of revenue cycle management lasg ebsrcm is aimed to goonline with the direct bank lodgment system dbls of the revenue collection process and provide information for tax administration and planning while monitoring and coordinating all revenue generating activities of the state. Requirements for the application of a money lending license in lagos. Laws of lagos state is amended by deleting the definition of the board and inserting the following new definition. Jul 01, 2014 chapter 18 tax clearance certificate chapter 19 tax evasion, tax avoidance, artificial transactions and back duty investigation chapter 20 tax offences and penalties. How to calculate the price of a c of o and governors consent. File your companies income tax, cit returns not later than six months at the end of the. The electronic tax clearance certificate etcc is a new system of issuing tax clearance certificates in lagos state. The law is principally a legislation authorising the lagos state government to impose the tax upon certain. In a bid to enhance the efficiency of tax payment and collection, the lagos state government has introduced a self assessment filling system for individual tax payers in the state.
An examination of the laws on tax reliefs and exemption in. Lagos state government in its effort to automate all its revenue base has started issuance of the electronic tax clearance card etcc. Lirs introduces new tax formsreduces cost of replacing. Pay your tax and lets grow together as lagos state moves towards meeting the needs of a mega city, lirs continues to position itself as the major funding arm. Lirs public notice on tin registration the lagos state internal revenue service lirs issued a public notice on 4 june 2019 informing taxpayers of its intention to integrate the existing taxpayers identification digit pid into the nationwide tax identification number tin system with the joint tax board. A bank certified cheque made payable to the lagos state government. The deducted taxes are remitted to the lagos state internal revenue service lirs, which is the tax regulatory body for lagos state through any designated collecting bank. However, obtaining the money lender license through a corporate body is more advisable. When this is presented to the integrated tax office ito a ereceipt is issued. You deserve these luxurious 18k gold handcrafted designs.
Tax clearance certificate, also known as tax form z, is an official document issued by the relevant tax authority to a taxpayer, certifying that, the tax assessed on the income from all sources of the taxpayer for the three years immediately preceding the current year of assessment has been fully paid. All lagos state taxes are collected by the lagos state internal revenue service lirs. Personal income tax in nigeria is a tax levied on all incomes of an individual employed by a business or organization. To obtain your tax clearance certificate tcc online, click here. This study assessed the impact of tax reforms on revenue generation in lagos state of nigeria using time series quarterly data between the period of 1999 and 2012, obtained from the records of tax. Unfortunately, we are far behind on tax law reform in nigeria as the last time any business tax legislation was enacted or. It is the electronic tax clearance certificate, which acknowledges the payment of tax. Chapter 21 estates, trusts and settlements chapter 22 double taxation relief.
As lagos state moves towards meeting the needs of a mega city, lirs continues to position itself as the major funding arm of the state government by putting in place structures that will ensure collection of the proper amount of tax revenue at the least cost. For example, in lagos it is obtained from the lirs. Lagos state government electronic banking system of. A money lending license in nigeria can be granted to an individual or a corporate body. We operate more efficiently by making strategic partnerships. The rate of the tax is also 5% of the classes of goods and services enumerated in schedule 1 of the law. Click here for full copy find other laws of kaduna state, nigeria here. So, for abc ltd, they will be given a certificate reflecting the years 2010, 2009, and 2008.
Personal income tax is imposed on individuals who are either in employment or are running their own small businesses, under a business name or partnership. Lagos state revenue administration final report november 2012. Lagos state internal revenue service lirs is the revenue collecting arm of the lagos state government saddled with the responsibility of collecting taxes and other revenues. Although there could be one storey building, provided that the nursery section occupies the ground floor. This tax audit and tax productivity in lagos state, nigeria, fulfills an identified need to study how. As part of efforts to enhance the ease of doing business in lagos state, the lagos state internal revenue service lirs has announced various initiatives aimed at achieving efficient tax. Lirs public notice on tin registration lirs public notice on tin registration the lagos state internal revenue service lirs issued a public notice on 4 june 2019 informing taxpayers of its intention to integrate the existing taxpayers identification digit pid into the nationwide tax identification number tin system with the joint tax board. How to obtain an income tax clearance certificate for your company.
Mar, 2018 the government of lagos state seems to be currently in the eye of the storm over its introduction of a law, a property tax as it were, known as the land use charge act of 2018, which repeals a. Nov 26, 2018 to enrol a child in any of the lagos state primary schools, the parents or guardians are expected to have the lagos state residents registration agency lasrra slip, a years tax clearance, and. Taxpayers should present the eticket for the issuance of firs official receipts. The law has as its commencement date, 19 th july 1982.
As long as you have a company established in lagos, you are expected to pay your tax to the state government. Badara assessed the effect of the tax audit on tax compliance in nigeria a case of bauchi state. Get informed about the 3 main tax collection bodies. Lagos state is the fastest growing state in the federation and one of the fastest growing mega cities in the world today and to keep improving public services, the government needs to find the financial resources to finance future infrastructure and public services. Tax reciept or tax clearance certificate this is very very important now and without this, no co would be granted now if you dont have it, but you want to proceed with your co registeration immediately, you must pay n60,000 to the land registry to cover the tax clearance certificate.
Lagos state internal revenue service is a government owned tax company that is in charge of all taxes and revenues generated internally within lagos nigeria. Roving heights book is an online bookstore for business books, motivational and inspirational books, literature and poetry, children books and fiction, memoir and educational books. To enrol a child in any of the lagos state primary schools, the parents or guardians are expected to have the lagos state residents registration agency lasrra slip, a. How to obtain a money lenders licence in lagos state. Police clearance of the applying individual corporate body in lagos, it is obtained from commissioner of police, lagos state command, ikeja g.
Disclosing this on thursday, the executive chairman, lagos state internal revenue service, mr. Jul 10, 2009 registration of private schools in lagos becomes easy now. Lagos state internal revenue service lirs all you need. Government, tax administrators, practitioners and academics alike. This law may be cited as the kaduna state tax codification and consolidation law, 2016.
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