The Federal Inland Revenue Service (FIRS) has announced extra tax concessions in response to COVID-19. Option to pay tax in Naira: Tax is payable in the currency of the transaction. For transactions in foreign currency, taxes will be paid in that same currency. During the lockdown, businesses that cannot get foreign exchange to settle their…
As most businesses in Nigeria are on lockdown, economic activities have reduced. Low economic activities hurt fiscal revenue and cash flow. To boost tax revenue, the Federal Inland Revenue Service (FIRS) has granted a palliative measure to taxpayers with outstanding tax liabilities from desk review, tax audit, and investigation. Taxpayers with outstanding tax balances will…
Income tax is payable on taxable income or profits. However, a person with no taxable income may have a tax liability. In such a situation, the estimated charge is a minimum tax. As minimum tax affects individuals and corporations, this article will address six frequently asked questions (FAQs) on minimum tax for companies in Nigeria….
Apart from being the end of Quarter 1 2020, March 2020 was a defining moment in the Nigerian tax system. Tax and regulatory authorities had to issue various concessions due to the COVID-19 pandemic. In case you missed the major tax headlines, here are the top seven (7) events that shaped the Nigeria tax space…
Lagos State Government has released Lagos State Infectious Diseases (Emergency Prevention) Regulations 2020 (the Regulation). The Regulation aims to prevent and lower the spread of COVID-19 in Lagos State. COVID-19, also referred to as Coronavirus, is a Dangerous Infectious Disease under Section 2 of the Quarantine Act Cap Q2 LFN 2004. The Emergency Prevention Regulations…
As at 31 March 2020, Nigeria confirmed 139 cases of coronavirus (COVID-19). The pandemic reduced the level of economic activities in Nigeria within a couple of days. Businesses and individuals providing non-essential goods as well as services were advised to close operations and stay at home. Social distancing, proper hygiene, and self-isolation were safety tips…
In Nigeria, companies with related-party transactions may also have transfer pricing (TP) and country-by-country reporting (CbCR) responsibilities. These entities will file their TP and CbCR returns to the tax authority in the prescribed format. Thus far, the method of filing TP and CbCR returns has been a manual process. Taxpayers will soon say bye-bye to…
To lower the impact of COVID-19 on taxpayers, the Federal Capital Territory Internal Revenue Service (FCT-IRS) has extended the time for filing the annual individual tax returns (Form A) by 3 months. The new deadline for filing Form A is 31 June 2020. More details on Form A in Nigeria is here. The process…
Nigeria has joined a host of other countries around the globe that have rolled out economic palliatives in response to the COVID-19 pandemic. Five (5) regulatory bodies have extended the time to file statutory returns while Nigerian lawmakers have proposed a Bill to improve the economic welfare of businesses and individuals. Federal Inland Revenue Service…
To lower the impact of COVID-19 on taxpayers, the Lagos State Internal Revenue Service (LIRS) has extended the time for filing the annual individual tax returns (Form A) by 2 months. The new deadline for filing Form A is 31 May 2020. More details on Form A in Nigeria is here. Taxpayers can access their…