The Lagos Chamber approved a fiscal package for 2024 that maintains the measures already established this year, such as the continuity of the IMI rate at 0,3% for urban properties, the 20% reduction in the IMI rate to be applied to leased urban properties for permanent housing, the non-application of the variable rate in the IRS and the non-assessment and collection of surcharges to companies.
As in 2023, these measures are intended to mitigate the impact of rising inflation on families and companies, "also continuing policies to support the community and local economy", says the Câmara de Lagos.
With regard to the Municipal Property Tax (IMI), the rate to be applied will remain at 0,3%, which corresponds to the legal minimum limit that can be applied and charged (in the case of rural properties it will be 0,8% as it is a flat rate).
In the case of the IMI to be applied to urban properties leased for permanent housing, the 20% reduction is also maintained for contracts registered with the Tax Authority valid for the year of the intended tax benefit. As the application of the measure is not automatic, it is necessary for landlords to submit an application, which will be available between September 4th and November 29th through the new Online Services (Urban Rehabilitation Section) of Lagos City Council.
In addition, the tax reduction is also maintained depending on the number of dependents in the household (automatic application mechanism that provides for a fixed reduction of 20 euros for one dependent, 40 euros for two dependents and 70 euros for three or more dependent).
Within the scope of the Urban Rehabilitation Area of the City of Lagos (ARU), it is planned to continue the mechanism that allows for a triple increase in the rate applicable to properties that have been vacant for more than a year or in ruins and, in return, reduce it by 30% the fee for properties intervened under the concession of use licenses issued between December 1, 2022 and November 30 of this year.
Having been a novelty in the tax package for 2023, the municipality also intends to maintain, next year, the abdication of the variable participation rate (of up to 5%) in the IRS, corresponding to the entire tax on income for 2024, which no longer be charged in 2025, waiving its entire participation in the IRS, offering it to its residents.
In relation to companies, the same criteria will also be maintained, with the proposal not to levy and charge surcharges on the taxable income of companies subject to IRC, a decision that has been repeated since 2021.
Finally, at the same municipal meeting, the proposal was also approved to continue applying the Municipal Fee for Rights of Way (TMDP) to companies that operate electronic communications networks and services accessible to the public, setting it at 0,25% .
All of these proposals for the new fiscal package for 2024 already approved at a City Council meeting will now be presented at the next session of the Municipal Assembly for consideration and deliberation.
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