Four days ago, the Lagos State Internal Revenue Service (LIRS) extended the deadline for filing individual annual tax returns to April 14, giving taxpayers an extra two weeks to complete the process through its electronic platform.

The extension gives fresh breathing space for employees, freelancers and business owners who missed the earlier March 31 deadline. It also comes as the agency keeps up efforts to improve compliance with personal income tax rules across the state.

In a statement, the Executive Chairman of LIRS, Ayodele Subair, said the extension was meant to help residents submit correct returns while also encouraging them to meet their tax obligations on time.

He said individuals should treat the filing of annual income tax returns as a priority, adding that the process has now been fully moved to the LIRS eTax platform.

Who must file

LIRS said all taxable residents in Lagos are expected by law to file annual tax returns, no matter their employment status or source of income.

This includes workers in paid jobs, business owners, freelancers, content creators and individuals with more than one stream of income.

A common misunderstanding is that workers whose taxes are already deducted through the Pay As You Earn system do not need to file annual returns.

Tax authorities said that belief is wrong.

They explained that PAYE deductions are only advance tax payments made through employers and do not remove the duty to file annual returns.

This means individuals must still declare other earnings, including rent, investments, side businesses and freelance income.

Even those who made little or no money during the year are still required to file. In such cases, they may submit a nil return, showing that no tax is payable.

How to file on the LIRS portal

LIRS said annual returns must now be filed online, as manual submission is no longer accepted.

The first step is to visit the LIRS eTax platform and log in with your Taxpayer ID and password.

For first-time users, registration may be required before access is granted. Such users may also need to obtain a Tax Identification Number.

After logging in, go to the section labelled My Tax Returns and select the option to file a return.

Next, click on File Returns Here to begin the process.

You will then be required to enter details of your income. This includes salary and any other earnings made during the year, such as business income, freelance jobs or investments.

One mistake many taxpayers make is declaring only their salary while leaving out side income.

The platform will also require details about your accommodation, whether rented or provided by an employer.

After that, taxpayers can add eligible reliefs and deductions. These may include pension contributions, life insurance and NHIS payments.

Supporting documents must also be uploaded. These may include RSA pension statements and insurance records.

Where applicable, voluntary pension contributions, NHF payments and mortgage details should also be included.

Before final submission, all entries should be reviewed carefully. Once satisfied, the taxpayer can click Confirm Submission to complete the process.

Documents to keep ready

To avoid delays, taxpayers are expected to have the necessary documents ready before starting.

These include salary records, bank statements, records of business income, rent receipts and details of investment earnings.

Penalties for failure to file

Despite the deadline extension, LIRS said penalties still apply to defaulters.

The agency said failure to file attracts a fine of N50,000 for the first month and N25,000 for each additional month of default.

Where a taxpayer refuses to settle a confirmed tax liability, the authorities may begin enforcement steps.

This may include recovering the debt through third parties such as banks or business associates.

Why the deadline matters

The renewed push for compliance reflects Lagos State’s reliance on internally generated revenue to fund infrastructure, healthcare, education and other public services.

With the process now fully digital and enforcement becoming stricter, taxpayers who understand the system early and file on time are more likely to avoid penalties and meet their obligations without stress.