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 manual completion and submission of TP returns; courtesy of Nigerian tax reform. Recently, the Federal Inland Revenue Service (FIRS) announced the official launch of E-TP PLAT 2.0, an electronic filing portal, for Transfer Pricing returns. The e-filing platform will allow companies to file their TP declaration forms, TP disclosure forms, CbCR notification forms, and CbCR report online.
Registration for electronic filing of TP returns
Registration for E-TP PLAT 2.0 is different from the one for e-filing. Covered taxpayers must, therefore, register on E-TP PLAT 2.0. A copy of the E-TP access application form is available here. The completed form should be submitted to the relevant FIRS tax office. After an entity obtains an e-filing profile for TP declaration forms, TP disclosure forms, CbCR notification forms, and CbCR reports, then the registration process will be complete.
Meanwhile, FIRS accepts a hard copy of TP returns as full migration to online filing is yet to take effect. FIRS will also release a user guide for navigating the online TP portal soon. To access E-TP PLAT 2.0, visit https://transferpricing.firs.gov.ng/login.php.
Other points to note
Taxpayers have ample time to be conversant with the new procedure. FIRS must provide constant access to the portal to tackle technology downtime. Furthermore, online filing will enable companies to file their tax returns at any time and from anywhere. Electronic filing of TP and CbCR returns may also improve the ease of paying taxes in Nigeria. According to the World Bank’s Ease of Doing Business Report 2020, Nigeria ranks 159 out of 190 economies on the ease of paying taxes. It takes 343 hours to pay taxes in a year.
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