A Series on Tax Reliefs – Part 3

Welcome to the third part of this series.

We have been reviewing the tax reliefs made available by the Federal and State Governments to taxpayers to cushion the effects of the COVID-19 pandemic.

So far, we have reviewed the tax reliefs made available in the following states: Lagos, Bayelsa, Kebbi, Gombe, Jigawa, Bauchi, Akwa Ibom and Yobe State. You can read them HERE.

In this piece, we would be reviewing the tax reliefs made available in the following states: Oyo, Osun and Delta State.

Some of these tax reliefs available in various states include:

The Oyo State Board of Internal Revenue Service has made the following tax reliefs and palliatives for taxpayers in the State:

• Extension of the deadline for filing of annual returns for individual taxpayers, including self-employed persons, for five months from April 1 to August 31, 2020.

• Extension of the deadline for filing of annual returns of employees by the employers of labour, for six months, from March 1 to August 31, 2020.

• Waivers of penalties and interests for employers in the primary sector of the economy (agriculture, fishing, transportation and mining), who file their tax returns on or before August 31, 2020

• 50% reduction in penalties and interests for employers in the secondary sector of the economy, such as food processing, beverages, sachet and bottle water producers, who file tax returns on or before August 31, 2020.

• 75% reduction in penalties and interests for the service sector employers – hotels, educational institutions, tourist centers – that file tax returns on or before August 31, 2020.

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

• Waiver of interest and penalties on outstanding tax liabilities arising from tax audits carried out on private primary and secondary schools, eateries and hotels from 2011 to 2019 financial years. The total tax audit liabilities less interest and penalties must be paid on or before September 30, 2020.

• Payment of outstanding tax liabilities in instalments for taxpayers on case by case basis.

• Waiver of penalties for late payment of liabilities under the Pay-As-You-Earn (PAYE) Scheme that was due during the COVID-19 lockdown in the State from April 1 till October 31 2020.

• Waiver of penalties due on the late filing of the year 2020 annual tax returns

• Waiver of interest and penalties on additional tax liabilities arising from 2009 – 2015 tax audit exercise for taxpayers who can settle the outstanding principal amount by 31st December 2020

The Osun State Internal Revenue issued the following tax reliefs and palliatives for taxpayers in the State:

• Waiver of Penalty and Interest on all concluded Tax Audit Review till December 31^st, 2020.

• Implementation of the Land Use Charge rates based on property valuation will to enjoy up to 50% discount in the urban areas while semi-urban/rural areas will enjoy Amnesty Rates of between N2,000 – N10,000 per annum.

• Waiver on penalty and interest on arrears of Land Use Charge from 2017 – 2019 all properties. This waiver applies to those that make payment on or before December 31, 2020.

• 20% discount to MSMEs (Micro, Small and Medium Enterprises) and individual Taxpayers (Direct Assessment) that will pay down on respected demand notice before December 31, 2020.

• The minimum tax payable discount under the Presumptive Tax Regime (Artisans, Market Women, etc) in the state has been reduced from N3000 – N2000.

• The deadline for the submission of form A for the employees and Annual Returns in accordance with Sections 41 (3) & 81 (1 -3) of the Personal Income Tax Act (PITA) 2011 as amended, for Companies operating in Osun State is extended from March 31 to October 31, 2020.

• A 50% discount on all assessed Capital Gain Tax (CGT) till December 2020.

• Payments in four maximum instalments granted to all Taxpayers in the Small Medium Enterprises (SMEs) and the Informal Sector.

• The penalty due for late remittance of Pay-As-You-Earn (PAYE) deductions has been waived between March and December 2020 for all sectors.

We applaud the various State Governments who have rolled out palliative measures to ease the burden of Tax compliance and financial obligations the COVID-19 pandemic has placed on several businesses and individuals.