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 liabilities can pay in Naira.
- Filing extension: Extension of time to file the personal income tax (PIT) returns for personnel of Foreign Affairs, Military, Police, and non-residents by three (3) months. The new date is 30 June 2020.
- Deductibility of COVID-19 donations: Federal Government will issue circulars and Ministerial Orders to treat charitable donations to COVID-19 pandemic as a tax-deductible expense.
Also, FIRS appealed to businesses experiencing a boom to pay their taxes before the due date. The target sectors are telecommunications, e-commerce, supermarkets, financial institutions, and manufacturers that have higher revenue during the COVID–19 lockdown. No doubt, the tax authority wants to fix cashflow gaps at this crucial time. It’s up to businesses that are experiencing a boom to make the next move.
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