The Pay-As-You-Earn (PAYE) system is used to tax people who are working. The employer is considered to be an unpaid agent of the Tax Authority under the program and is therefore required to withhold taxes from salaries, wages, bonuses, allowances, and benefits in kind.

Pay-As-You-Earn tax and the different ways to register for Pay-As-You-Earn Tax in Lagos are explained in this article and where you can file your pay-as-you-earn tax.

Pay-As-You-Earn

Pay-as-you-Earn, or PAYE, is an acronym denoting the amount of income tax withheld from your paycheck prior to your receipt of it. Every year, PAYE is typically divided into equal instalments.

In 1944, PAYE was first implemented. Your company sends all PAYE immediately to FIRS before it even enters your account, so you never truly have access to it. If you work for yourself, the procedure is a bit different. You will typically pay taxes once or twice a year, and your PAYE will be determined using a self-assessment tax form.

Some important notes on PAYE are:

• The PAYE tax is determined per individual.
• The income band is determined in the Nigerian naira as its currency.
• Any pay, income, fees, gains, and benefits received in the course of employment are included in the employee’s gross income.

How to apply to file your Pay-As-You-earn Tax

There are 2 ways you can pay for your pay-as-you-earn tax. You can either apply physically at any inland revenue service located close to you or pay from the comfort of your home online.

1. Applying physically at an Inland revenue service

The applicant must go to any Inland Revenue Services office that is close to his or her state of residence to apply for and register for PAYE tax in person. The application process includes:

• Create an application letter seeking registration on the official website of the inland revenue service close to you
• Bring this form along with the other necessary paperwork when you visit the office.
• Utilize the assistance of the staff members in the office to approach the necessary department and submit the application.
• As stated in the “Required papers” part of this page, be sure to attach all the necessary paperwork.
• After that, deliver it in person to the responsible official at the office.
• Your application and the supporting papers will be sent for additional verification after submission.
• The candidates will be provided with additional information regarding the registration after all internal processes have been completed.
• Following application clearance, the company is given a reference number that must be used in all communications with the tax office and a “Form G” that serves as the employer’s remittance form.

2. Applying online:

With effect from 1 August 2022, a new method of creating bill references to pay taxes in Lagos State has been released by the Lagos State Internal Revenue Service (LIRS). All tax payments can now be made through the eTax portal, which renders all other methods of acquiring bill references useless. Taxpayers and other stakeholders will find these payment processes and procedures easier.

Essential Documents required to file your Pay-As-You-Earn tax in Lagos

• Application letter indicating the nature of the business
  Evidence of the business’s Registration or Incorporation
• List of employees and their yearly salary (as required)
• Director tax clearance certificates (if required)
• any further materials (if required)

Lagos State Internal Revenue Scheme (LIRS) in Ojodu Berger, Lagos

In Nigeria, there are several locations for reporting PAYE taxes. There are several locations where Lagos residents can file their taxes. We shall outline where in Ojodu, Lagos State’s internal revenue system, you may file your PAYE tax for the purposes of this post.

The location and contact for filing Pay-As-You-Earn taxes in Ojodu, Berger is highlighted below:

Address: 6/8, Isheri-Ogunnusi Road, Omole Layout, Ojodu, Lagos, Ojodu-Berger

Phone: 0802 471 9624