Individual - Significant developments

Last reviewed - 28 July 2022

The Lagos State Internal Revenue Service (LIRS) issues Public Notices on capital gains tax (CGT) and personal income tax (PIT) on the sale of securities

The LIRS has issued Public Notices pursuant to recent tax law changes, highlighting compliance requirements from taxpayers and other relevant parties resident in the state.

The relevant tax law changes include:

  • The Capital Gains Tax Act historically exempted gains on the disposal of Nigerian government securities, stocks, and shares from CGT. The Finance Act 2021 has amended the CGT Act to introduce CGT on the disposal of shares, subject to certain conditions.
  • The Minister of Finance (MoF) issued a Notice effective from 2 January 2012 exempting interest and other income earned from government, corporate, and supranational bonds from PIT. The MoF Notice highlighted that the exemption was for a period of ten years (i.e. until 1 January 2022), except for Federal Government bonds, which will continue to be exempt. The ten-year period has now lapsed, and the LIRS communicated that the exemptions have expired.

The LIRS launches Service Charter

On 28 July 2021, the LIRS released a Service Charter highlighting the LIRS’s mode of operations and services to be provided to taxpayers and other stakeholders. The Charter also underscores the rights, obligations, and expectations of the LIRS and its stakeholders, with the aim of enhancing effective customer-friendly service delivery. The Charter is designed to serve as a guide regarding the general administration of taxes by the LIRS and is expected to boost trust and accountability between the LIRS and its stakeholders, especially taxpayers.

Expatriates to obtain Nigeria’s National Identity Number (NIN)

Section 16 of the NIMC Act defines registrable persons to include Nigerian citizens, permanent residents, and foreigners who are legally resident in the country for a period of two years or more. Below are the list of requirements for expatriates to obtain a NIN:

  • International passport.
  • Residence permit (CERPAC form/card).
  • Bank Verification Number (BVN).