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While the Federal NRS handles company profits, the State Internal Revenue Services (SIRS) are responsible for taxes related to individuals and residency. If you have employees or own business premises, you will deal with state authorities like the LIRS (Lagos) or FCT-IRS (Abuja) every single month.
Primary State Taxes
- PAYE (Pay-As-You-Earn): Deducted from staff salaries and remitted by the 10th of the following month.
- Personal Income Tax (PIT): Paid by sole proprietors and partners. See 2026 PIT Reforms.
- Withholding Tax (Individuals): Deducted from payments to non-incorporated vendors.
Managing these requires a ‘Payer ID’ from your state’s digital portal. For a breakdown of local costs, see Business Premises Levy. For help with state filings, visit the LIRS e-Tax portal or the Joint Tax Board.”