As part of the tax reforms in Nigeria, the functions and powers of the Joint Tax Board have been phased out. A new board, the Joint Revenue Board (JRB), will replace the JTB in 2026. One of the roles of the JTB was to give a tax identification number (TIN) to taxable persons in Nigeria….
“We will require your tax clearance certificate to……”. “Please submit your TCC to complete the application”. If you are an employee or self-employed person in Nigeria, you may have heard these words from a bank or government agency. The first step to managing the hassle is to know the information required to obtain an individual…
After the Corporate Affairs Commission (CAC) issues a certificate of incorporation or registration certificate to a business, what next? This question is one of the pressing issues for new business owners in Nigeria. Depending on the type of industry, a new corporation may register with two or more regulatory agencies. As paying taxes is a…
Upon commencement of a business in Nigeria, a taxable person shall register for taxes. Every taxable person will register with the Federal Inland Revenue Service (FIRS) as well as the relevant State Internal Revenue Service (IRS). Registration with FIRS does not waive the need to register with the State IRS. A State IRS may provide…
The Federal Inland Revenue Service (FIRS) has released three new forms for filing monthly Value Added Tax (VAT) returns. Two VAT Form 002 that applies to head office and branch office while the third Form 006 is for withholding VAT at source as below. Headquarter Form 002 – Head office will provide the aggregate details…
The COVID-19 pandemic has changed the way businesses sustain their operations; likewise, the tax and regulatory authorities. A tax authority may choose from two options in the post COVID-19 economy. Option 1: Maintain status-quo and wait for taxpayers to settle unpaid balances. Option 2: Offer incentives and collect outstanding payments In Nigeria, Lagos state and…
Federal Inland Revenue Service (FIRS) has allowed additional time for tax defaulters to enjoy penalty and interest waiver by two (2) months. The tax waiver covers outstanding tax payments on self-assessment filing, tax audit, investigation, and desk review assessments. It also includes installment which FIRS granted to a taxpayer under VAIDS (Voluntary Assets and Income…
After the tax authority conducts an audit on business records, the next step is usually a tax audit reconciliation meeting. The purpose is to resolve any outstanding tax issues in a physical visit to the tax office. However, the COVID-19 impact has reduced the need for a face-to-face meeting, and tax authorities are gradually embracing…
Federal Inland Revenue Service (FIRS) will resume field audit, investigation, and monitoring exercises. The Federal tax authority suspended field reviews in April 2020 due to low business activities during the COVID-19 pandemic. As the Federal Government has given businesses the go-ahead to resume full operations, FIRS will be able to generate more fiscal revenue for…
For amounts payable to the Federal Inland Revenue Service (FIRS), the relevant tax office of a taxpayer depends on four (4) factors. They are the nature of the industry, location, residency status, and turnover of the business. FIRS may assign a company to a tax office in a different local government area from the taxpayer’s…