LIRS Issues Stark Warning: Lagos Workers Must File Tax Returns by March 31 or Face Penalties

The Lagos State Internal Revenue Service (LIRS) has mandated all employees residing within Lagos to submit their Annual Income Tax Returns by March 31 each year. The agency has issued a stern warning that failure to adhere to this requirement will result in penalties and possible prosecution.

In a communication directed at Human Resources Directors of businesses throughout the state, the Executive Chairman of LIRS, Ayodele Subair, highlighted that this directive is firmly rooted in Nigeria's existing legal framework.

The notice from the LIRS stated, "Lagos State Internal Revenue Service (LIRS) wishes to remind all corporate organizations operating within Lagos State of the statutory obligation placed on individuals to file their Annual Income Tax Returns as prescribed under the applicable laws of the Federal Republic of Nigeria."

Referencing Section 24(f) of the 1999 Constitution (as amended), the LIRS underscored that "it is the duty of every citizen to declare their income honestly to the appropriate and lawful agencies and to pay their taxes promptly."

Furthermore, the agency cited Section 13 of the Nigeria Tax Administration Act, 2025, which mandates, "every taxable person [is required] to file an annual return of income with the relevant tax authority within the prescribed period."

It was clarified that all employees based in Lagos must file their returns using Form A with the LIRS by March 31 annually, "irrespective of the fact that their taxes may already be deducted at source under the Pay-As-You-Earn (PAYE) scheme."

The LIRS appealed for the support of corporate organisations in ensuring compliance, requesting, "we request the cooperation of your Human Resources Department to sensitize and ensure that all employees within your organization comply with this statutory requirement by filing their annual income tax returns within the stipulated timeline."

The agency warned that non-compliance would incur financial penalties, specifying that "failure to comply with this statutory obligation attracts administrative penalties of N100,000 for the first month of default and N50,000 for each subsequent month for as long as the failure continues."

It was further noted that "penalties will be raised against your staff upon expiration of the deadline of 31 March 2026," emphasizing that these penalties "do not preclude LIRS from initiating prosecution against any staff found to be in violation of the law."

The LIRS stated that enhanced compliance would bolster tax administration in the state, adding that, "your organization’s support in encouraging and facilitating compliance by employees will significantly enhance voluntary tax compliance and strengthen the overall tax administration framework within Lagos State."

Taxpayers seeking further information or clarification were advised to contact the LIRS support lines or utilize the agency's electronic tax portal for assistance with the filing process.