The Lagos State Internal Revenue Service (LIRS) has issued eleven (11) public notices in various national newspapers since August 2017. The notices are aimed at providing clarity to taxpayers on LIRS' interpretations of provisions of the Personal Income Tax Act, as amended (PITA) on specific issues and the level of tax compliance required of every employer and employee in Lagos State.
We provide below an analysis of LIRS' position on the issues covered in the following Notices issued:
- Treatment of savings element on insurance premiums
- Valuation of accommodation provided by employers
- Exemption of compensation for loss of employment
- Taxation of employee loan
- Taxation of share/stock options
- Pay-as-you-earn on employee outsourcing arrangements
- Withholding tax on employee outsourcing arrangements and other labour brokerage arrangements
- Taxation of non-nationals with a temporary work permit
- Tax relief on voluntary pension contributions
- Allowable interest deductions
- What constitutes reasonable removal expenses
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.