EXPLAINER: How taxpayers can file returns ahead of April 14 deadline

The Lagos State Internal Revenue Service (LIRS) has extended the deadline for filing annual individual tax returns to April 14, giving residents additional time to comply with their tax obligations after the initial March 31 cut-off.

The two-week extension is aimed at easing pressure on taxpayers who may not have completed their filings on time, while also strengthening overall compliance with personal income tax requirements across the state.

According to LIRS Executive Chairman, Ayodele Subair, the extension is intended to help residents submit accurate returns and fulfill their civic responsibilities without undue difficulty. He also emphasized that the filing process has now been fully digitized through the agency’s eTax platform.

Who is required to file

LIRS has reiterated that all taxable residents of Lagos State are legally required to file annual tax returns, regardless of their employment status or income source.

This includes salaried workers, business owners, freelancers, content creators, and individuals with multiple income streams.

A common misconception is that individuals whose taxes are deducted at source under the Pay As You Earn (PAYE) system are exempt from filing returns. However, tax authorities have clarified that this is not the case.

PAYE deductions are only advance payments made through employers and do not eliminate the obligation to file annual returns. Taxpayers are still required to declare all additional sources of income, including rental earnings, investments, side businesses, and freelance work.

Even individuals who earned little or no income during the year must still file a return. In such cases, they are expected to submit a nil return indicating that no tax is due.

Steps to file via the LIRS eTax platform

LIRS has fully transitioned to electronic filing, meaning manual submissions are no longer accepted.

To begin, taxpayers should log on to the LIRS eTax portal using their Taxpayer Identification Number (TIN) and password. First-time users may need to register on the platform and obtain a TIN before gaining access.

After logging in, users should navigate to the “My Tax Returns” section and select the option to file a return. Clicking on “File Returns Here” initiates the process.

Taxpayers will then be required to input details of all income earned during the relevant year. This includes salaries, business profits, freelance earnings, and investment income. It is important not to omit any source of income.

Information regarding housing status, such as rented accommodation or employer-provided housing, must also be provided.

Next, taxpayers can claim applicable reliefs and deductions. These may include pension contributions, life insurance premiums, and National Health Insurance Scheme (NHIS) payments.

Supporting documents, such as pension account statements, insurance records, voluntary pension contributions, National Housing Fund (NHF) payments, and mortgage details (where applicable), should be uploaded to substantiate claims.

Before final submission, users are advised to carefully review all entries for accuracy. Once satisfied, they can complete the process by clicking “Confirm Submission.”

Documents to prepare

To ensure a smooth filing process, taxpayers are encouraged to have relevant documents ready in advance. These typically include salary records, bank statements, business income records, rent receipts, and details of investment earnings.

Penalties for non-compliance

Despite the extension, LIRS has warned that penalties will apply to individuals who fail to file their returns.

Defaulting taxpayers may be fined N50,000 for the first month of non-compliance, followed by an additional N25,000 for each subsequent month.

In cases where a taxpayer refuses to settle confirmed tax liabilities, the authorities may initiate enforcement actions, including recovering the debt through third parties such as banks or business associates.

Importance of timely filing

The drive for improved compliance reflects Lagos State’s reliance on internally generated revenue to finance public services such as infrastructure, healthcare, and education.

With the filing process now fully digital and enforcement measures becoming stricter, taxpayers who file accurately and on time are better positioned to avoid penalties and meet their obligations with ease.