A Series of Tax Relief Part 2

Welcome to the second part of this series.

Last week, we looked at some of the tax reliefs that have made available by the federal government to taxpayers to cushion the effects of the COVID-19 pandemic. However, various state governments have also made some tax reliefs available to taxpayers. Some of these tax reliefs available in various states include:

The Lagos State Internal Revenue Service (LIRS) has made the following tax reliefs and palliatives for taxpayers in the State:

  • Approval of instalment payment of outstanding liabilities on case-by-case basis to ease the cashflow challenges that taxpayers are currently facing.
  • Waiver of penalty for late payment of Pay-As-You-Earn liabilities for March 2020 to May, 2020.
  • Waiver of penalties due for late filing of 2020 annual tax returns (Form A).
  • Waiver of interest and penalty on additional tax liabilities arising from 2009 to 2015 tax audit exercise for taxpayers who commit to a structured payment plan that terminates by December 31, 2020.
  • Grant of tax credit of 20% of cash and kind donations made by resident individuals to Lagos State Government (LASG) for COVID-19 management.  The credit will be available to offset 2021 year of assessment tax liabilities and subject to a cap of 35% of tax due; 
  • Increase in payment channels that are easier, simpler and more convenient for taxpayers; and
  • Adoption of video conferencing as the default mode of conducting tax audit reconciliation committee (TARC) meetings.

The Bayelsa State Board of Internal Revenue issued the following tax reliefs and palliatives for taxpayers in the State:

  • Extension of the deadline for filing Form A returns for taxpayers to September 30, 2020.
  • Waiver of interest and penalty for all outstanding Pay-As-You-Earn (PAYE) tax remittances until 31 August 2020.
  • Waiver of penalty for outstanding tax issues of periods up to December 2019 provided the undisputed liabilities are settled within one month from 1 July 2020 when the restriction on interstate travels outside curfew hours was lifted.
  • 50% discount on the personal income tax (PIT) assessment as contained in the State’s Minimum Harmonised Tax Rates for the informal sector for 2020 year of assessment.
  • 35% discount on pool betting tax for 2020 year of assessment.

The Kebbi State Board of Internal Revenue issued the following tax reliefs and palliatives for taxpayers in the State:

  • Suspension of the implementation of the new rates, fines and levies under the Revenue Administration Law of the State, which is currently under review, for a period of one year from the date it is signed into law
  •  Extension of the deadline for filing tax returns for individuals and businesses to 30 July 2020.
  • Waiver of interest and penalty that may arise from the extension of the filing due date.
  • 100% waiver of annual development levy for every taxable person in the State for the 2020 year of assessment.
  • Waiver of 50% of accrued interest and penalty on outstanding tax liabilities of corporate entities.
  •  Waiver of 30% of all tax liabilities outstanding for a year and above for individuals under PIT assessment.

The Gombe State Internal Revenue Service recently issued the following tax reliefs and palliatives for taxpayers in the State:

  • Extension of time for filing of annual returns by individuals from March 31, 2020, to August 31, 2020.
  • Extension of time for filing of annual returns by companies from January 31, 2020 to August 31, 2020.
  • Waiver penalty of N50,000 for individuals and corporate organization N500,000 for non-filing.
  • Waiver of penalties and interests for outstanding liabilities on back-duty audits for individuals and enterprises in the state, particularly the micro, small and medium scale (MSMEs) enterprises affected by the pandemic.
  • Waiver of interest on all outstanding liabilities for limited liability companies operating in the state.
  • Taxpayers will be allowed to file returns using unaudited accounts, but must subsequently submit their audited accounts within two months after the revised due date for filing.
  • A waiver on interest element on back-duty liabilities for mast/towers levies of telecommunications companies, radio stations, and commercial banks.
  •  40 percent waiver on back-duty withholding taxes for rent on institutional estates, private estates, individuals rented properties, shops, and apartments.
  • A waiver on contracts, director and consultancy fees, among others,
  •  50 percent waiver on Capital Gain Tax assessed on the sale of properties.
  • Reduction of registration and renewal of vehicle particulars by 5 percent and 10 percent respectively from the original cost.

The Jigawa State Board of Internal Revenue issued the following tax reliefs and palliatives for taxpayers in the State:

  • Eighteen months tax relief to all new enterprises, one year tax holiday to all existing small and medium scale enterprises.
  • Reduction of penalty and interest from 10% to 5% and from 21% to 9% on interest respectively.
  • 50% waiver on business premises license.
  • 50% waiver on informal sector taxpayer from 1st July 2020 to 31 December, 2021.
  • 50% waiver for warehouse rent for businesses at state export free zone (EPZ) by Ministry of Commerce.

The Bauchi State Board of Internal Revenue issued the following tax reliefs and palliatives for taxpayers in the State:

  • Extension of the deadline for submission of return of income Form A by taxable persons and filing of annual returns by employers in line with Personal Income Tax Act to July 31, 2020.
  • Waiver of penalty on late remittance of pay as you earn (PAYE) deductions on hotels, restaurants, road transport operators, private schools proprietors that were supposed to remit their dues from January to July this year.
  • Waivers on late payment of ground rent for 12 months effective from January 1, 2020,
  • Waiver of penalty on late payment of deed registration approved from January to December 2020.
  • The implementation of presumptive tax regime on all informal sector businesses; traders, artisans, market women and other small-scale businesses scheduled to commence in June 2020 is now shifted to October 2020.
  • The imposition of consumption tax on hotels, restaurants and allied services scheduled to commence in June 2020 is now shifted to October 2020.

The Akwa Ibom State Board of Internal Revenue issued the following tax reliefs and palliatives for taxpayers in the State:

  • Extension of deadline for filing of individual income tax return for 2019 from March 31, 2020 to September 30, 2020.
  • Waiver of penalty charged for late payment/remittances of taxes for 2020 tax year.
  • Waiver of interest charged for late payment/remittances of taxes for 2020 tax year.
  • Waiver of Business Premises Levy for Small and Medium Enterprises (SME) with maximum annual turnover of ₦5,000,000.00 (Five Million Naira) for 2020 tax year ending December 31, 2020.
  • Waiver of Economic Development Levy for Small and Medium Enterprises (SME) with maximum annual turnover of ₦5,000,000.00 (Five Million Naira) for 2020 tax year ending December 31, 2020.
  • Suspension of specific Road Levies (viz daily ticketing, stickers and emblems and haulage fees) for 2020 tax year.
  • Granting of 25% discount on Personal Income Tax for traders in all the markets for 2020 tax year.

The Yobe State Board of Internal Revenue has made a tax relief of 10 percent on all tax assessments for 2019 (outstanding) and 2020 with effect from September 30.

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