Lagos State tax (LIRS)
LIRS Lagos State tax filing, explained.
What LIRS covers vs FIRS, who must file Lagos State tax, the Lagos State tax clearance certificate, and how PAYE and personal income tax work for Lagos residents and employers.
If you live or run a business in Lagos, you deal with two tax authorities, not one. The Federal Inland Revenue Service (FIRS) handles federal taxes — company income tax, VAT, the federal tax clearance certificate. The Lagos Internal Revenue Service (LIRS) handles state taxes — chiefly personal income tax and PAYE for people resident or employed in Lagos.
This guide explains what LIRS covers, who has to file with it, what a Lagos State tax clearance certificate is for, and how it fits alongside your federal obligations.
LIRS vs FIRS — what each one covers
The split matters because filing with one does not satisfy the other. A Lagos business can be fully current with FIRS and still owe LIRS, and vice versa.
- FIRS (federal): company income tax (CIT), VAT, withholding tax for companies, the federal TCC.
- LIRS (Lagos State): personal income tax (PIT), Pay-As-You-Earn (PAYE) for employees, the Lagos State tax clearance certificate, and other state levies.
Who must file with LIRS
Two broad groups have LIRS obligations:
- Individuals resident in Lagos — they pay personal income tax to LIRS, not to the federal government.
- Employers operating in Lagos — they must deduct PAYE from staff salaries each month and remit it to LIRS, and file annual returns of the deductions.
The Lagos State tax clearance certificate
Like the federal TCC, the Lagos State tax clearance certificate proves you are current with your state tax — in this case personal income tax through LIRS. Lagos State contracts, certain professional registrations, and some property and vehicle transactions ask for it.
It is a distinct document from the FIRS TCC. A Lagos business bidding for both state and federal work often needs both.
How PAYE works for Lagos employers
PAYE is the mechanism by which employees pay their personal income tax — the employer withholds it from salary and remits it monthly to LIRS, then files an annual reconciliation. Getting PAYE right keeps both the business and its staff compliant, and is usually a prerequisite for the staff to obtain their own tax clearance.
Filing LIRS taxes through Docufy
Docufy is rolling out state-tax filing support. You can already see the Lagos Internal Revenue Service among the agencies we work with on the agencies page — visit the LIRS hub at /agencies/LIRS to check what is currently available, and start your federal filings (FIRS TCC, VAT) from the catalog in the meantime.
Questions
Frequently asked.
What is the difference between LIRS and FIRS?
LIRS is the Lagos Internal Revenue Service and collects state taxes — personal income tax and PAYE — from people and employers in Lagos. FIRS is the federal tax authority and handles company income tax, VAT and the federal tax clearance certificate. They are separate; being current with one does not cover the other.
What is a Lagos State tax clearance certificate?
It is proof that you are up to date on your Lagos State personal income tax through LIRS. State contracts, some professional registrations and certain transactions in Lagos ask for it. It is distinct from the federal FIRS TCC.
Who pays LIRS PAYE?
Employers in Lagos deduct PAYE from employee salaries each month and remit it to LIRS, then file an annual reconciliation. The tax itself is the employee’s personal income tax, collected at source by the employer.
Can Docufy file my LIRS taxes?
State-tax support is being rolled out — check the LIRS hub on the agencies page for current availability. Your federal filings (FIRS TCC, VAT) can be started from the catalog today.
Do I need both a LIRS and a FIRS tax clearance certificate?
Often, yes. A Lagos business that bids for both state and federal contracts typically needs the Lagos State TCC (from LIRS) and the federal TCC (from FIRS), because they prove compliance with two different tax authorities.
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