Since 2022, the Lagos State Internal Revenue Service fully transitioned to a digital tax filing system, with a stricter penalty for defaulters. Studies, however, show that a significant number of businesses powering the state’s informal sector lack digital skills, limiting their engagement with e-tax systems, reports Omolabake Fasogbon
Mr Waheed Adisa is a property link agent, a block moulder and a building material trader whose combined businesses fetch him more than N1 million monthly. He automatically exceeds the annual turnover threshold of N12 million, which is exempt from paying tax under the new presumptive tax regime.
Being taxable, Adisa is required to pay one per cent tax on his turnover and declare his total annual income from all sources, as mandated under Sections 13 and 14(3) of the Nigeria Tax Administration Act (NTAA) 2025.
The sections require every taxable individual to file annual income returns with the relevant tax authority on their own initiative, declaring income from all sources, while employees are also expected to file separately in addition to their employers’ PAYE returns.
The filing process, which involves submitting tax returns and related documents to tax authorities, is also mandatory for individuals earning below the specified threshold to ensure fairness and transparency, although their tax liability may be zero, according to Special Adviser to the Executive Chairman of LIRS, Abideen Akande.
