The Lagos State Internal Revenue Service (LIRS) has issued a firm reminder to all employers of labour across the state: the statutory deadline for filing yearly tax returns for the 2025 financial year remains January 31, 2026. The agency's Executive Chairman, Dr. Ayodele Subair, delivered the warning in a recent statement, underscoring the mandatory nature of this obligation.
What the Law Requires from Employers
Dr. Subair clarified that the filing requirement is anchored in the Nigeria Tax Administration Act 2025 (NTAA). Specifically, Section 14 of the NTAA mandates that employers must submit detailed annual returns of all emoluments and compensation paid to their employees. This includes a clear account of taxes deducted and remitted to the relevant authorities.
Beyond employee compensation, the filing obligation extends to payments made to third parties. Employers are also required to declare remunerations paid to their service providers, vendors, and consultants. The core mandate is to ensure that all applicable taxes due for the previous year are fully calculated and remitted to the government.
Consequences of Missing the Deadline
The LIRS Chairman emphasised that filing yearly returns is not a suggestion but a mandatory legal obligation. He issued a clear warning that failure to comply by the January 31 cutoff will trigger statutory sanctions. These sanctions include administrative penalties as explicitly prescribed under the new NTAA 2025.
Dr. Subair urged businesses to integrate tax compliance into their core operational culture. "Employers must prioritise the timely filing of their annual income tax returns," he stated. "Compliance should be part of our everyday business practice."
Why Timely Compliance Matters for Lagos
The call for early and accurate filing is framed not just as a legal duty but as a civic contribution to the state's development. According to Dr. Subair, adherence to the deadline supports effective revenue tracking, which is a critical component of Lagos State's broader fiscal planning and long-term sustainability goals.
By meeting the January 31 deadline, employers play a direct role in enabling the government to plan and execute projects that benefit the wider community. The LIRS's reminder serves as a final nudge to ensure all entities regularise their tax affairs and avoid unnecessary penalties.
