TO: CHIEF OF STAFF – GOVERNOR’S OFFICE
OFFICE OF THE DEPUTY GOVERNOR,
SECRETARY TO THE STATE GOVERNMENT,
STATE COMMISSIONERS,
THE HEAD OF SERVICE,
PERMANENT SECRETARIES,
OFFICE OF THE ACCOUNTANT-GENERAL,
CHIEF EXECUTIVES OF:
CONSORTIUM ON ADMINISTRATION OF SALARIES & PENSIONS (CASP)
STATE AND FEDERAL NON-MINISTERIAL DEPARTMENTS,
CHAIRMEN OF LOCAL GOVERNMENTS,
GENERAL MANAGERS AND CHIEF ACCOUNTANTS OF FIRMS AND
LIMITED LIABILITY COMPANIES,
UNIVERSITIES, POLYTECHNICS AND OTHER TERTIARY INSTITUTIONS,
SECONDARY, PRIMARY AND NURSERY SCHOOLS, ETC
AND ALL OTHER EMPLOYERS OF LABOUR IN OGUN STATE
EMPLOYERS RESIDENT OUTSIDE OGUN STATE

OPERATIONAL GUIDELINE FOR 2011 PAYE TAX MATTERS
This circular on the above subject is issued for your information and necessary action for a hitch-free 2011 P.A.Y.E. Income Tax Operation.

All employers of labour are expected to use their Tax Department or Accountant in computing all their Employee’s PAYE Tax liability in accordance with the Internal Revenue Service (IRS) Guidelines on PERSONAL INCOME TAX as indicated in the example below:

***Other Allowances to be specified

WHAT IS TAXABLE UNDER ‘PAYE’?
Since May 1999 when the Nigeria Constitution was put into use, the Personal Income Tax Act 1993 as amended became operational. To this end, all remunerations, gains or profits from employment are taxable except those allowed by law. If you are in doubt please contact our Customer Service Unit on 0806024778 for assistance, OR read the IRS Guidelines on Personal Income Tax and Other Taxes which are available in all tax offices throughout Ogun State

ANNUAL TAX RETURN FORM
Taxpayers are expected to file annual returns of Income (Form A) with the Service not latter than 31st March 2011. The form can be downloaded from OGIRS Website: www.irs-ogun.org.

RELIEFS/TAX DEDUCTED AT SOURCE
All normal relief will automatically be granted but the following reliefs require further processing and documentation:
1. Interest on Home Ownership Scheme,
2. Life Assurance Policy,
3. Disability Allowance, and
4. Any other special relief

To claim reliefs relating to any of the above the employee must complete a ‘Form A’. The relief would be granted subject to proper documentation and authentication and communicated to the employer and the employee.

Tax suffered at source is deductible from employee’s tax liability. Please submit evidence of tax deducted from source if such has been received by IRS. A certificate of Withholding Tax deduction will be issued and this is used to offset the employee’s tax liability.

DEVELOPMENT LEVY
The Annual Development Levy of N100.00 must be deducted from each employee in the month of April 2011 and same paid to I.R.S. within 10 days of such deduction.

REMITTANCE OF TAX DEDUCTED
Finally, employers are to note that, tax deducted should be remitted within 10 days after the date of deduction. We have provided Bank Tellers with which payment should be made directly to any of our revenue Banks..

Internal Revenue Service (IRS) Ogun State has not hired consultants to collect cheques and our staff are not allowed to collect same. Any cheque or money given to these people, are at owner’s risk. Internal Revenue Service has banking facilities in the Zonal offices.

Your cooperation in faithfully discharging your civic obligation by promptly remitting taxes as at when due is of great importance to revenue collection in Ogun State.

Tax payments not made as at when due will attract penalty at 10% and interest at the prevailing commercial interest rate. No request for waiver of interest and penalty will be entertained by IRS.

We look forward to your assisting the government to serve you better.

Yours in Service

Babajide B. Odunbanjo

Chairman/Chief Executive