Lagos State tax (LIRS)
LIRS Lagos State tax filing, explained.
LIRS Lagos State tax filing explained: what LIRS covers and what the NRS (formerly FIRS) covers, who must file, PAYE for employers and the state TCC.
If you live or run a business in Lagos, you deal with two tax authorities, not one. The Nigeria Revenue Service (NRS), formerly FIRS, handles federal taxes — company income tax, VAT, the federal tax clearance certificate. The Lagos State Internal Revenue Service (LIRS) handles state taxes — chiefly personal income tax and PAYE for people resident 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. Docufy does not handle LIRS returns yet; the last section covers what you can file on Docufy for a Lagos business.
LIRS vs the NRS (formerly 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 the NRS and still owe LIRS, and vice versa.
- NRS (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 with staff who live in Lagos — they must deduct PAYE from those salaries each month, remit it to LIRS by the 10th day of the following month, and file an annual return of the deductions by 31 January.
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. LIRS issues it electronically on etax.lirs.net once you have annual returns filed on e-Tax for the last three years and all assessed tax for those years paid.
It is a distinct document from the federal TCC the NRS issues. 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 the tax authority of the state where the employee lives, then files an annual reconciliation. For staff who live in Lagos, that is LIRS. 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.
The PAYE calculator works out the monthly deduction under the 2026 tax bands, and our PAYE and state tax guides cover the reliefs and deadlines.
Can you file LIRS taxes on Docufy?
Not yet. Docufy does not handle personal income tax, PAYE returns or the Lagos State tax clearance certificate. For those, deal with LIRS directly (lirs.gov.ng) or work with your accountant.
What you can file on Docufy for a Lagos business are the federal and company documents that sit alongside your state tax: the tax clearance certificate, the monthly VAT return, the CAC annual return, and the PenCom, NSITF and ITF compliance certificates that tenders ask for. Each shows its price and target time before you start.
Questions
Frequently asked.
What is the difference between LIRS and FIRS?
LIRS is the Lagos State Internal Revenue Service and collects state taxes — personal income tax and PAYE — from people and employers in Lagos. The Nigeria Revenue Service (NRS), formerly 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 TCC issued by the NRS.
Who pays LIRS PAYE?
Employers deduct PAYE from the salaries of staff who live in Lagos 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 I file my LIRS taxes on Docufy?
Not yet. Docufy does not handle LIRS returns, PAYE or the Lagos State tax clearance certificate; for those, go to LIRS directly or use your accountant. You can file your federal documents on Docufy, such as the tax clearance certificate and monthly VAT returns, and your CAC annual return.
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 the NRS, formerly FIRS), because they prove compliance with two different tax authorities.
Sources
- LIRS – FAQS - Lagos State Internal Revenue Service
- Nigerian Tax ID Portal Goes Live Effective January 1, 2026 - LIRS
- Nigeria Tax Administration Act, 2025 (Act No. 5), certified text edited for 2026 — National Assembly of Nigeria
- Faq – FCT Internal Revenue Service
Fees and rules last checked 27 Sep 2026. The agency that issues the document has the final word. See our editorial policy.
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