Support for families and businesses continues to be the focus of the fiscal package for next year, approved at the last meeting of the Lagos municipal executive.
The application of the extension of the IMI exemption for a further two years based on the Tax Benefits Statutes is new for 2025.
According to the City Council, the measures already established will be maintained, such as the continuation of the IMI rate at 0,3% for urban buildings, the 20% reduction in the IMI rate to be applied to urban buildings leased for permanent housing, the non-application of the variable rate in the IRS and the non-launching and collection of a surcharge on companies.
At a time when inflation is having an increasingly greater impact on the lives of families and the local economy, the Lagos municipality states that it “intends to maintain these support measures as a way of mitigating these costs”.
In the case of Municipal Property Tax (IMI), the rate to be applied will remain at 0,3%, corresponding to the minimum legal limit that can be applied and charged (in the case of rural buildings, it will be 0,8% as it is a fixed rate).
Properties undergoing renovation work in the City's Urban Rehabilitation Area will have a 30% reduction in the IMI rate (for licenses issued between December 1, 2023 and November 30, 2024).
In the case of IMI to be applied to urban properties rented for permanent housing, the 20% reduction for contracts registered with the Tax Authorities, valid for the year of the desired tax benefit, is also maintained.
Given that the application of the measure is not automatic, it is necessary for owners to submit an application, which will be available between September 16 and November 29 through the new Online Services (Urban Rehabilitation Section) of Lagos City Council.
Additionally, the tax reduction will also be maintained based on the number of dependents that make up the household (automatic application mechanism that provides for a fixed reduction of €30 for one dependent, €70 for two dependents and €140 for three or more dependents).
The novelty of this tax package is the application of the measure provided for in the Tax Benefits Statute (amended by Law No. 56/2023 of October 6), which allows the extension of the IMI exemption for a further two years based on the conditions contained in said legislation.
Also to maintain, next year, the waiver of the variable participation rate (of up to 5%) in the IRS, corresponding to the entire tax on income from 2025, which will no longer be charged in 2026, waiving its entire participation in the IRS, offering it to its residents.
In relation to companies, the criterion remains the same, with the proposal not to levy or charge a surcharge on the taxable profit of companies subject to IRC, a decision that has been implemented since 2021.
The new tax package also approved the continued application of the Municipal Tax on Rights of Way (TMDP) to companies operating publicly accessible electronic communications networks and services, set at 0,25%.
All these proposals for the new fiscal package for 2024, already approved at the Council Meeting, will now be presented at the next session of the Municipal Assembly for consideration and deliberation.
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