PAYE REGULATIONS


LAGOS STATE MINISTRY OF FINANCE INTERNAL REVENUE SERVICE PERSONAL INCOME TAX ACT 1993

NOTICE TO PREPARE AND DELIVER RETURNS OF INCOME FOR THE YEAR 2004 ASSESSMENT

Pursuant to Section 1 of the Personal Income Tax Act 104 of 1993 as amended and all other Laws enabling the Internal Revenue Service, Lagos State, in that behalf, notice is hereby given to the following effect:


  1. There is hereby imposed a tax on the income of individuals, Communities and families and arising to any trustee or executor under any settlement, trustee or estate which shall be determined under and be subjected to all the provisions of Act 104 of 1993, that is, any' individual or body of individuals (including a family) and any Corporation Sole, Trustee or Executor, having any income which is chargeable With tax under the provisions of this Act whether personally or in representative capacity shall within the period of ninety days from commencement of the year of assessment declare the income derived from all sources for the purpose of assessment of income tax for the year 2004 in the prescribed Form A obtainable from the Lagos State Internal Revenue Service Offices given in sub-paragraph 5 below. Furthermore, All employers of labour are requested to collect and complete form H1 (Returns of Income form) from the Tax Office within their jurisdiction and return them immediately. Alternatively, all employers of labour may visit the website (www.lagos.ebs-rcm.com) to download the form H1.
  2. The Edict NO.4 of January 3rd 1989 Introduced the payment of Development Levy by every taxable adult residing in the State. The general public Is hereby reminded that the edict is still in force and that the levy is retained at N100. The Internal Revenue Service has been mandated to collect this levy.
  3. TREATMENT OF TAX CLEARANCE CERTIFICATE: e TCC/ AUTOMATED REVENUE RECEIPT
    The general public is hereby informed that the Lagos State Government has commenced the issuance of Automated Revenue Receipt and Electronic Tax Clearance Certificate (e-TCC).'The Guideline for collection of e- TCC is as follows:


A PAYE APPLICATION:

1. Complete TAX FORM A at the beginning of the year obtainable from:

  • i)Tax Stations.
  • ii) IRS Headquarters; and
  • iii) EBS-RCM website

2. Complete e-TCC processing form obtainable from:

  • i)Tax Stations.
  • ii) IRS Headquarters; and
  • iii) EBS-RCM website (www.lagos.ebs-rcm.com)

3. Attach completed and certified form H2;

4. Submit the above at the Tax Station where his/her employer is registered;

5. Check back to collect card after 7 working days;

A NON-PAYE APPLICATION:

1. Complete TAX FORM A at the beginning of the year obtainable from:

  • i)Tax Stations.
  • ii) IRS Headquarters; and
  • iii) EBS-RCM website

2. Complete e-TCC processing form obtainable from:

  • i)Tax Stations.
  • ii) IRS Headquarters; and
  • iii) EBS-RCM website (www.lagos.ebs-rcm.com)

3. Attach completed and certified form H2;

4. Photocopies of Tax Assessment

5. Payment Receipt(Automated Revenue Receipt)

6. Submit the above at the nearest Tax Station;

7. Check back to collect card after 7 working days;

  1. SELF ASSESSMENT RETURNS Self-assessment system was introduced in Nigeria with effect from 1st January 1991 and it has been operational since then at the Federal Level and in Lagos State. Under the scheme, tax payers are required to complete the Self-Assessment Tax Return Form 1 R 30.4 Coy obtainable free of charge from all the Internal Revenue Service Offices which are located in areas of the State as shown in sub-paragraph 5 below or from the EBS-RCM website (www.lagos.ebs-rcm.com) The completed tax return form showing the computation of the liability together with the relevant financial statements, detailed schedules and accompanied with payment of the tax due Is to be filed with the appropriate tax office within the time permitted by law. There is also a general tax guide which accompanies the self-assessment tax form to assist tax payers in completing the Form. The guide/regulation is also available on the EBS-RCM website.
  2. All such taxable persons referred to in paragraph 1 above and deemed to be resident within Lagos State on the 1st day of January 2004 shall forward the return of his/her income to any of the following:

Lagos State Internal Revenue Service Tax Station Names and Addresses.
S/N Tax Office Address
1 Agbowa/Ikosi Tax Office Agbowa, Lagos.
2 Agege Tax Office Ipaja Road, Agege.
3 Aguda – Ijesha Tax Office 13, Olubunmi Alonge Street, Aguda, Lagos.
4 Ajegunle Tax Office 151, Kirikiri Road, Ajegunle. [MORE...]
  • Employers of Labour are also required when forwardIng Information to use the format shown hereunder:

    A. DECLARATION OF RENTED OFFICE. RESIDENTIAL ACCOMMODATION AND WAREHOUSE.


    1. Location of Property | Date Tenancy Commenced | Name and Address of Owner | Annual Rent Paid
    2. We declare that the information herein contained in this declaration is a true and correct statement of our organisation's rented apartments and rent paid thereon.

    B. DECLARATION OF PAYMENT OF DIVIDEND


    1. Total Dividend Declared & Paid | Total Gross Dividend Paid to Lagos State Share-holders | Withholding Tax Paid thereon | Evidence of Payment
    2. We declare that the information herein contained in this declaration is a true and correct statement of dividends declared and paid by our enterprise to our shareholders for the period Indicated above. The two declarations above are to be duly signed by the most senior Accounting Officer of the organisation making each returns.
  • NOTICE OF WITHHOLDING TAX ON CONTRACTS The General Public is also reminded of the provision of the Miscellaneous Taxation Provisions decree of 1987 and the charges contained in the 1 996 Budget. The 5 percent rate of tax remains the same in the 2004 fiscal year. Such tax withheld must be added up on monthly basis and remitted directly to the government approved designated banks with a schedule to obtain certificates of payment for beneficiaries. Please note also that HENCEFORTH, all WHT remittances must be accompanied by the schedule of the payees/contractors in order to obtain the certificate of payment. .
  • RETURN ON CAPITAL GAINS TAX Individuals are directed to furnish the IRS with information on assets disposed by them.
  • COLLECTION OF SALES TAX The General Public is reminded that the collection of Sales Tax on specific goods and services in the state In accordance with the provisions of the Sales Tax Law Cap. 175 Laws of Lagos State of Nigeria 1994 as amended by Order 2000 is still in force. You are therefore enjoined to give your full co-operation to the state government by ensuring that all sales tax due to the state is adequately collected and remitted to the revenue. Please visit the EBS-RCM website to obtain your Sales Tax Registration Number and Sales Tax Guide for the operations of sales Tax.
  • BODY OF APPEAL COMMISSIONERS By provisions of Section 59 Sub-section 2A & 3 of the Act, the constituted Body of Appeal Commissioners which has its secretariat at No. 20 Jebba Street (West), 3rd Floor, Ebute-Metta, Lagos is still very much in place. The general public is hereby advised to take full advantage of the existence of this body. Further information may be obtained from the EBS-RCM website.
  • Finally, All Employers of Labour are hereby notified that the 2004 PAYE guidelines would be available, in all the tax offices stated above and are to be collected free of charge. The guidelines are also available at the EBS-RCM website.



SIGNED: OLUFOLARIN O. OGUNSANWO BOARD SECRETARY LAGOS STATE INTERNAL REVENUE SERVICE.

The remittance procedures are as follows:

TAX PAYER

  1. Taxpayer goes to the Tax Station to obtain Tax Assessment and Bank Payment Advice
  2. Taxpayer goes to the bank with the assessment/ Bank Payment Advice, obtains the customised teller, completes the set correctly and pays to the bank
  3. Taxpayer drops the Accountant General’s copy of the teller in the box while he/she goes away with two (2) copies of the teller temporarily.
  4. Taxpayer goes back to the bank after Value Date to collect the receipt.
  5. Taxpayer presents the Original Receipt at the Tax Station/Agency to complete the transaction for which assessment was obtained (if necessary).

NB: Only one receipt will be issued per teller.

BANK

  1. The bank ensures that the tellers are properly completed and receives deposits from the Taxpayers.
  2. The bank transmits information of daily transactions to Alpha-Beta Consulting Limited in the specified format.
  3. The bank returns to Alpha-Beta Consulting Limited to collect receipts for delivery to respective Taxpayers.
  4. The bank obtains the Agency Copy of the teller before release of the receipt to the Taxpayer.
  5. The bank returns the Agency copy to the Agency through Alpha-Beta Consulting Limited.

NB: The Bank must ensure that both the Accountant General’s and Agency’s copies of the tellers are clear and legible.

TAX AGENCY

  1. Copy of daily manifest will be sent to the agency for record purposes.
  2. Any problem should be referred to Alpha-Beta Consulting Limited for prompt resolution. Please note that delay in the issuance of receipts is usually due to the fact that Taxpayers do not provide correct information to the banks or the banks fail to transmit the information to Alpha-Beta Consulting Limited promptly.
  3. Records of Deduction:

    An employer must provide the following particulars regarding emoluments of each employee on a monthly basis:

    • The name of the employee
    • The Taxpayer’s Identification Number
    • The address of the employee
    • The month of payment
    • The amount of emolument for the month
    • The contribution by the employee to approved pension funds in the month
    • The cumulative tax free emoluments year-to-date
    • The cumulative net emoluments year-to-date
    • The cumulative taxable emoluments year-to-date
    • The corresponding cumulative tax and
    • The tax, if any, deducted or repaid on making the payment for the month.
    • This information may be sent to the LIRS through the collecting bank in an electronic format.

    Where an employee ceases to be in employment, the employer must send to relevant tax office, the following particulars about the employee:

    • The name of the employee
    • The Taxpayer’s Identification Number
    • The address of the employee
    • The date on which the employment commenced
    • The date on which the employment ceased
    • A Relief from income tax, if any
    • The cumulative emoluments at the date of leaving and
    • The corresponding cumulative tax.
  4. Change of Employment

    5. CHANGE OF EMPLOYMENT

      The employer must give to an employee two copies of detail of tax deducted from his emoluments as at the date the employment ceases. On commencement of another employment, the employee must deliver the two copies of detail of tax deducted from his former employment to the new employer who must
      1. Insert on the two copies
        1. Staff Number
        2. The date on which the employment commenced and
        3. The address of the employee (if the employee has changed his address before his new employment)
      2. Send a copy to the Tax Office where the employer has registered and retain a copy.
      3. Prepare a tax deduction card in accordance with the detail of tax deductions from his former employment and record on the card the cumulative tax-free emoluments, if any and corresponding cumulative tax as from the month the employee left his former employment.
  5. DEATH OF EMPLOYEE
    6. NB: The Bank must ensure that both the Accountant General’s and Agency’s copies of the tellers are clear and legible.