Recently, the Federal Inland Revenue Service (FIRS) issued a public notice on the filing of tax returns based on segment. Before a taxpayer can pay tax in Nigeria, the company or individual must register for taxes with the relevant tax authority. There are two types of tax authorities in Nigeria. First, FIRS administers taxes payable to the Federal Government of Nigeria such as companies income tax and value added tax. Second, the State Internal Revenue Service oversees taxes payable to the State Government such as personal income tax and consumption tax.
Furthermore, a business can register for taxes payable to the State Government at the nearest state tax office to the taxpayer. However, companies cannot just register for taxes or file tax returns at any FIRS office. FIRS allocates taxpayers to a specific tax office based on size or industry or residency. The classification aims to deliver quality service to taxpayers in four categories.
Category A - Companies operating in the oil and gas sector
- Upstream Sector: Large tax office (LTO) Upstream, Lagos
- Downstream Sector: LTO (Downstream), Lagos
- Services: LTO (Services), Lagos
Category B - By size (for others not in category A)
- Below NGN200million turnover: Nearest micro and small tax office (MSTO) to the taxpayer
- NGN200 million and below NGN1 billion turnover: Nearest medium tax office (MTO) to the taxpayer
- NGN1 billion and above turnover: Nearest LTO
Category C - By Industry (Irrespective of size)
- Pioneer cases: MTO Abuja
- Banks, insurance and other financial institutions in Lagos: LTO Non-Oil Financial services
- Banks, insurance and other financial institutions other than locations in Lagos – Nearest LTO/MTO to the taxpayers
- NGOs: Tax offices nearest to the NGOs
- Telecoms, aviation and construction companies in Lagos: LTO Financial services, Lagos Island
- Telecoms, aviation and construction companies in other locations other than Lagos: Nearest LTO to the taxpayers
- Manufacturing and conglomerates in Lagos: LTO Non-Oil Mainland, Ikeja
- Manufacturing and conglomerates in other locations other than Lagos: Nearest LTO to the taxpayers
Category D - Non-residents
All non-resident companies and individuals: Non-resident persons tax office
Businesses should take note of the relevant office to register for and file tax returns with the FIRS. A full list of Federal Inland Revenue Service (FIRS) offices in Nigeria is available here.