Preferably, giving your year-end tax returns to Lagos Internal Revenue Service (LIRS) before March 31 is one way of remaining compliant and fighting the penalty. The guide will be founded on the years of practical experience of assisting businesses and individuals navigate the tax regime in Nigeria to get all the requirements established without trouble.
Basic knowledge: a briefing on LIRS necessities.
Decide to verify what you are liable to. In Lagos State, business people and individuals are required to present annual returns to Pay As You Earn (PAYE), Personal Income Tax (PIT) and corporate tax where applicable. The ordinary deadline is March 31 to persons lacking audited accounts and June 30 to persons having audits.
Prepare important documents in advance: your Tax Identification Number (TIN), bank statements, pay slips, evidence of investment income and expense bills. LIRS is formed by electronic submission of papers via its Tax Portal which minimizes the number of mistakes made as well as accelerates processing. The failure to do so may attract a 10 percent penalty imposed on the tax to be assessed along with an interest at the rate of 21 percent annually.
I have witnessed filers who save time by digitizing their files – scanned all papers into folders designed by category. This mere routine will make a great undertaking look like a rapid overview.
Register and/or update profile.
The first time filers require a TIN, and you can be provided one free of charge by LIRS portal or at the offices of Joint Tax Board (JTB). Register all their personal data in the LIRS e-Tax portal on lirs.net, including TIN, registered email address or phone number.
In case you have changed your details whether it be address, bank account or dependants; do update your profile today. LIRS takes advantage and uses this information in pre-populating returns and reducing manual time entry by half. Use two-factor authentication to ensure an added security because cyber threats are on the rise.
Personally, incongruent information slows the process. Throughout, match your National id or BVN against records so as to align them.
Step‑by‑Step Filing Process
Open the portal and chose File Returns under whatever was on your dashboard. Select the type of taxes- Individuals PIT and the year of assessment (2025 2026 March 2026).
Enter the revenues received in all categories of income: employment, rentals, dividends etc. Minus allowable expenses like rent (maximum) 200,000, medical expenses, life insurance payments etc. LIRS provides a standardized relief amounting to 200,000 and 20 percent of earned income.
tax (nigeria): Progressive tax: tax on 1st 300000; tax on above 3200000. Post the return and creates a signed PDF. Remit or bank transfer in 30 days in case you are liable to tax.
Pro hint: Turn in the filing with the past year to use as a mock run so as to miss out on frequent errors such as omitting exemptions.
Table of Important Deductibles and Reliefs.
The following is a summary of the deductions that can be made under the LIRS rules:
| Category | Maximum Relief (₦) | Notes |
|---|---|---|
| Consolidated Relief | 200,000 | Plus 20% of earned income |
| Rent | 200,000 | Actual or deemed, whichever lower |
| Medical Expenses | 10% of income | Doctor-certified only |
| Life Insurance Premium | Actual | Up to ₦5,000 monthly |
| Education (Child) | 50,000 per child | Max 4 children, certified |
Common Mistakes to Avoid
Foreign income is often neglected by many expats, and this may create an issue. Publish it in totality; LIRS compares it to the international agreements. False claim of fake dependents also subjects itself to auditing by the BVN linkages.
The extensions are not granted very often, they are provided in case of some hardship which has been proven. Individuals have a flat penalty of ₦5,000 on late filings and larger businesses have more punishment.
I have assisted in resubmissions of clients following glitches with the portal, so save as draft and take a screen grab of what you have submitted. Determinists use platitudes to safeguard against regrets.
Payment and Confirmation
Upon submitting, download your assessment notice. Make payment through pay options: internet banking, or POS, or LIRS offices. You should even file even when you have no tax to pay.
Monitor the processing on the portal; the time required is normally 2-4 weeks. Those who are successful are issued with an e-certificate- use it when taking loans or visa applications.
The proofs of payments are synchronized automatically, although it is necessary to keep their copies in paper. Paying due will create a good tax history making the subsequent audits easy.
Benefits of Timely Filing
Filing prior to March 31 may result in refunds in case you have overpaid this is refunded within 90 days. It even guards you against LIRS substitution evaluations that may double your tax obligation by 150 per cent.
Good standing provides better credit ratings and assists in acquisition of business tenders in the long term. With compliance clients, I find that they negotiate more easily with revenue officers in reviewing.
FAQs
Q1: What if I miss March 31?
Violations will start with fines of 5,000 and more with interests. A waiver can be made upon sound reasons.
Q2: Do I need an accountant?
Not to get easy returns but it would make sense to have more complex income above ₦25million.
Q3: Where’s the LIRS portal?
Go to lirs.net, and enter in using your TIN.
