By Segun Adeyanju
The Lagos State Internal Revenue Service (LIRS) has reminded residents that filing annual tax returns is a statutory obligation for all taxable individuals, urging them to comply before the March 31 deadline.
The agency said employees, freelancers, business owners and individuals with multiple sources of income are required by law to file their annual tax returns, even if no additional tax is payable.
Speaking on the requirement, the Director of Tax Audit at LIRS, Foluso Mustapha, explained that an individual annual tax return is a formal declaration of income earned in the preceding year, including deductions and reliefs claimed.
According to him, filing tax returns remains compulsory for all taxable residents in Lagos State.
“Filing is not optional. It is a statutory obligation imposed on every taxable individual resident in Lagos State,” Mustapha said.
He warned that failure to comply with the filing deadline of March 31 could attract penalties of N100,000 for the first month of default and N50,000 for each additional month thereafter.
Mustapha also noted that employees whose taxes are deducted through the Pay As You Earn system must still file annual returns to declare other possible sources of income such as rent, investments or side businesses.
He further explained that individuals who earned little or no income within the year are still expected to submit a nil return to indicate that no tax is payable.
The LIRS official advised taxpayers to prepare relevant documents such as salary records, bank statements, rent receipts, financial statements for business owners, investment income records and evidence of deductible expenses when filing their returns.
He added that freelancers, content creators and gig workers are also required to disclose income earned through digital platforms and other independent engagements.
Mustapha emphasized that filing tax returns does not necessarily mean taxpayers will pay additional tax, noting that the process simply helps determine an individual’s correct tax position.
He added that annual tax returns can be filed online through the LIRS portal at no cost, urging residents to comply with the requirement as tax revenues remain critical to funding infrastructure, healthcare, education and other public services in Lagos State.
