Ondo Initiates Tax Relief For State-based Companies, Residents

Taxpayers and companies in Ondo State have been given some tax relief in order for them to be able to withstand the negative impact of COVID-19 pandemic on their livelihoods and businesses within the state. Many households and companies have been adversely affected by the lockdown measures adopted to curb the coronavirus from spreading.

Several jobs had been lost and workers' salaries have been cut by companies in response to the impact of the pandemic and lockdown on their income. AllNews had reported that many companies couldn't operate and workers were not allowed to go to work due to the restriction on movement across Nigeria.

The negative impact was felt across Nigeria due to the economic fallout that is pushing Nigeria's economy towards a second recession in eight years. Now, in order to alleviate the financial burden placed on companies and households by COVID-19, the Ondo State government has listed some tax relief for the state-based companies and residents.

Ondo State Tax Relief

The state government suspended the implementation of some taxes and waived the penalty for late remittance of the pay-as-you-earn (PAYE) tax between March and September 2020 for all sectors. “The implementation of the hotel, restaurant and event centre consumption tax due to start on June 1, 2020, is suspended in view of the peculiarly harsh impact suffered by the entertainment/hospitality sector,” he said.

“The full implementation of the land use charge rates based on property valuation is suspended. The existing amnesty rates for residential property will subsist as follows: high-value zone (HVZ): N7,000.00-10,000.00, medium-value zone (MVZ): N3,000.00 – N5,000.00, and base-value zone (BVZ): N1,000.00 – N3,000.00 per annum.

“Penalties and interest on arrears of land use charge from year 2017 to 2019 are hereby waived for residential property. This waiver applies to those that make the payment on or before December 31, 2020.

“The deadline for the submission of Form A for employees and annual returns in accordance with sections 41 (3) & 81 (1-3) of the personal income tax act (PITA) 2011 as amended, for companies operating in Ondo state is extended to September 30.”