LIRS public notice on taxation of employee loan

The Lagos State Internal Revenue Service (LIRS) issued a public notice (the Notice) on 14 September 2017 with respect to taxation of interest benefits accruing to employees on loans granted by employers.

The Notice aims at addressing arrangements where loans are granted to employees at no interest, or interest rates lower than market rates. LIRS posited that such arrangements give rise to a benefit which is taxable in the hands of employees.                                               

                        

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