February 15, 2024

The Managing Director

Calvados Global Services Limited
13 Walter Carrington Crescent
Victoria Island
Lagos

Dear Sir,

COMMUNIQUE ON THE NEW TAX CLEARANCE CERTIFICATE FOR LAGOS STATE AND OTHER STATE
TAX AUTHORITIES

We write to no fy you of the recent changes made by the Lagos State Internal Revenue Service (LIRS)
on the issuance of Tax Clearance Cer ficates (TCCs). In line with the provisions of Sec on 41 of the
Personal Income Tax Act 104, Cap P8, LFN 2004 as amended, all taxable individuals are expected to:

1. For each year of assessment, without no ce or demand therefore, file a return of income in the
prescribed form containing the prescribed informa on with the tax authority of the State in which
the taxable person is deemed to be a resident, together with a true and correct statement in
wri ng.

2. A taxable person shall file with the relevant tax authority the returns as s pulated in this sec on
within 90 days from the commencement of every year of assessment.

To ensure full compliance with the above-referenced provisions of the law, LIRS has commenced the
issuance of upgraded TCC with enhanced features, which include the Chairman’s signature, TCC
number and bar code.

To obtain this TCC, a new set of guidelines has been issued by LIRS as outlined below:

i Individual registra on on the LIRS e-Tax portal

ii Genera on of LIRS Taxpayer Iden fica on Number (Taxpayer ID)
iii Update individual Biodata on the e-tax Pla orm
iv File annual returns for three consecu ve years on the portal

Following the above, LIRS will review the returns filed and issue an addi onal assessment or a nil
assessment based on available informa on on the individual taxpayer. The individual must se le any
addi onal assessment raised within 30 days.

The above process requires every employee to file his/her annual returns on the LIRS e-tax portal, on
or before the 31st day of March of every year, a er the year of assessment. This is in addi on to the
annual PAYE tax returns employers are required to file on or before January 31st of every year.

Frankly, the process of obtaining the upgraded TCC now entails a rigorous procedure which imposes
an extra burden on the staff and the company.
Given the above and to assist with the process of filing the individual returns and obtaining the
upgraded Lagos State TCC on behalf of the company’s employees, we hereby propose a fee of ₦25,000
(twenty-five thousand Naira) per local staff and ₦35,000 (thirty-five thousand naira) per expatriate
staff.

Addi onally, we will be charging ₦10,000 (ten thousand naira) per employee for the processing of
other states' tax clearance cer ficates.

We await your response on this, to enable us to ini ate the process for the company’s employees’ TCC
for 2024.

Yours faithfully,

James Oni
Manager