Tuesday, July 25, 2017 9:00AM / Deloitte
The Lagos State Internal Revenue Service (LIRS) recently commenced issuance of notices to employers requesting submission of mid-year salary projections for employees in respect of 2017 tax year. LIRS cited reliance on Section 46 of Personal Income Tax Act, LFN Cap P8 of 2004, as amended, which grants it the power to call for further returns.
The mid-year projection covers July to December 2017 and should include:
· start dates for new employees who were not on the payroll as at January 2017, where applicable;
· projections for routine salary increments and periodic bonus payable within the mid-year period under consideration; and
· salary schedule and bank instructions for voluntary remittances for the half-year ended 30 June 2017 for reference.
The information is required to be provided in a template prescribed by LIRS. Employers are expected to submit the projection, in soft and hard copies, to the office of the Executive Chairman within 7 days of receipt of the notice from LIRS.
Upon receipt of the information, officials of LIRS are expected to interface with the relevant employers and may schedule visit to the premises of such employers to conduct spot check of the information provided. The dates of the visit would be communicated by LIRS and shall not be less than 7 days from the date of receipt of notice from LIRS in this regard.
Visit Deloitte’s blog to keep yourself abreast of business alerts, subject matter expert perspectives and so on.
This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication.