A taxpayer is every individual, whether self-employed or employed by another, and every business entity operating in Imo state, and who are obligated by relevant laws to pay taxes to the Imo state government.
This serves as a guide for self-employed individuals and employers of labor, in making their tax returns and remittances
to the Imo State Internal Revenue Service (IIRS).
The Personal Income Tax Act (as amended 2011) is the law that guides the collection of PIT and the Imo State Government through the IIRS is responsible for this collection. Generally, every resident of Imo state, regardless of if they are federal, state, local government or private workers have a legal obligation to pay PIT to the state government.
There are two methods of PIT collection: Pay As You Earn (PAYE) i.e. taxes from employment and Direct Assessments i.e. Taxes from self-employed persons.
Withholding tax is income tax paid to the government by the payer of the income rather than directly by the recipient of the income.
The obligation of the payer in this instance is to deduct the tax on the date when the income becomes due or payable to the recipient
and remit same to the government within 30 days of such deduction. Refer to sections 69-75 of the PITA for further guidance on this tax
Below is a list of WHT items and their percentages to be deducted and remitted.
This is a tax paid to the government on the disposal of capital goods and assets. What this means is that the owner of an asset is obligated to pay to the state government 10% of any profit he makes from the sale of the asset. Such assets include houses, shares, investment properties, bonds, cars, or even collectibles and art. This tax is backed by the Capital Gains Tax Act, Cap. 354, LFN 1990.
Stamp Duties Tax is backed by the Stamp Duties Act, Cap. 441 LFN, 1990. The tax provides for the levying of stamp
duties on certain instruments/documents whether physical or electronic. The power to collect Stamp Duties by the
State Tax Authority is enshrined in Section 4(2) of the Act where the State is given the power to collect the duties
in respect of instruments executed between persons or individuals at such rates to be imposed or charged as may be agreed
with the Federal Government.
It is the responsibility of MDAs, MDBs, Companies, Landlords, Executors, etc to ensure that service providers, contractors and tenants pay stamp duties due on agreements, receipts and other dutiable instruments. Taxpayers, Banks, MDAs or other persons who have collected or are in possession of stamp duties are mandated to immediately pay same over to the state government.
The Land Use Charge Tax is backed by The Land Use Charge Law (2020) which was introduced to consolidate all land based charges under one single charge for ease of administration and collection. The owners of land or landed properties in the state are obligated to pay this tax to the government.
It is a tax on any property used for the production of income including rental houses, office buildings, factories, etc. Business premises registration fee in respect of urban and rural areas, which includes the initial registration fees and yearly renewals of registration, is fixed by each state and is paid by the occupier of such premises. The person who carries on business in any premises is obligated to register with the state government and obtain the business premises certificate of registration and is expected to always have it displayed on the premises, this certificate is to be renewed every end of the year.
It is a tax imposed on goods and services consumed in hotels, bars, restaurants and event centers within Imo State. This tax is payable by the consumers who purchase these goods and services. The hotels, bars, restaurants and event centers serve as collecting agents for the government and are expected to remit same to the government within the stipulated time. See the Hotel Occupancy and Restaurant Consumption Tax Law of Imo State.• Waste Management fees;