LIRS warns employers to meet Jan 31 tax filing deadline

The Lagos State Internal Revenue Service (LIRS) has reminded employers across the state to comply with statutory tax filing requirements ahead of the January 31 deadline for annual returns, warning that late or non-compliance would attract significant penalties under the law.

Director of Personal Income Tax at LIRS, Mr. Ayodele Adebayo, issued the caution during an interview on Thursday, noting that January is a critical month in Nigeria’s tax calendar. He explained that employers are required to file annual Pay-As-You-Earn (PAYE) returns, providing details of all employees engaged during the previous year, whether still in service or not.

Under the Nigeria Tax Administration Act (NTAA) 2025, employers must submit comprehensive schedules of employees’ earnings, taxes deducted, and remitted. Monthly returns of PAYE and Withholding Tax are also mandatory. Adebayo stressed that failure to file by January 31 attracts fines of ₦100,000 in the first month of default and ₦50,000 for each subsequent month, even if PAYE deductions have been remitted.

He emphasised that proper filing is essential for employees to obtain Tax Clearance Certificates, adding that both employers and individuals must file returns separately to remain compliant. “The fact that your organisation has filed PAYE does not exempt you from filing personal returns,” he clarified.

Adebayo noted that compliance is guided by the residency rule, meaning organisations must file returns in Lagos if their employees reside in the state, regardless of where the company’s headquarters is located.

So far, about 10,000 companies have begun filing, with over 7,000 completing the process and 2,000 flagged for errors. LIRS is targeting more than 35,000 companies and has intensified sensitisation efforts to prevent last-minute congestion.

He urged employers to use the digital filing platform, stressing that manual submissions are no longer accepted. “The process is now fully digital. Employers can file from their offices using the LIRS portal. Templates are provided to make compliance easier,” he said.

Accurate and timely filing, Adebayo added, enhances transparency, supports government planning, and strengthens Lagos State’s ability to deliver infrastructure and public services. He advised employers to comply early to avoid sanctions and system overload as the deadline approaches.

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