KEEPING UP WITH THE NIGERIAN TAX SPACE.
The outbreak of the Covid-19 pandemic rocking the world has no doubt affected the status quo of things, Nigeria inclusive. The pandemic has the world staying indoors thereby affecting economic and social activities. Nigeria has however tried to tailor its policies in line with this new reality. This is a glimpse of what has been going on in the tax space since the beginning of the year obtained from the PricewaterhouseCoopers website.
President Muhammadu Buhari signed the Finance Bill (now Finance Act) into Law
The president on 13th January 2020 announced that he had signed the Finance Bill into Law. Although the bill was to have been signed in December 2020 and to take effect on the 1st of January 2020, there was delay which led to it being signed on the above date. The Act amended different tax laws, for example, VAT Act, CITA, among others:
For the changes made to the various tax laws: https://www.thetaxclubng.com/2019/12/06/finance-bill-2019-implication-on-the-nigerian-tax-culture/
Nigeria’s Tax Appeal Tribunal rules in favour of FIRS in Landmark case on Transfer Pricing
The tribunal held that #1.74 billion assessment issued by FIRS to Prime Plastichem Nigeria Ltd with respect to the transfer pricing audit is lawful:
The Finance Act 2019 has been published in a gazette
The Finance Act 2019 has been published in a Gazette with commencement date of 13 January 2020, the date it was signed to Law:
Federal Capital Territory Internal Revenue Service extends deadline for filing tax returns by 3 months
As a result of the Covid-19 pandemic, the FCT-IRS announced the extension of deadline for filing of personal tax return from 31st March to 30th June 2020:
LIRS extends filing of returns on Personal Income Tax by 2 months
This was to extend from the 31st of March to the 31st of May in response to the coronavirus pandemic.
FIRS Grants Tax Concessions in Response to Covid-19
In response to the outbreak of the novel coronavirus, the Federal Inland Revenue Service announced certain measures on the 23rd of March 2020 to help cushion the spread of the virus. This includes: using e-platform to file tax returns, use of electronic mail for correspondences, extension of deadline for filing VAT and Withholding tax, among others:
FIRS introduces electronic platform for Transfer Pricing filing
FGN announces fiscal stimulus measures
Nigeria’s Minister of Finance, Budget and National Planning has announced fiscal stimulus and other interventions in response to Covid-19 pandemic and the oil price fiscal shock. Highlights of this can be found here:
Nigeria issues order on significant economic presence
Pursuant to the amendments made by the Finance Act to the Company Income Tax Act to impose taxes on foreign entities in respect to certain services or digital transactions if it has Significant Economic Presence in Nigeria, the Finance Minister made an order to determine what constitutes SEP. Read more on this through the link.
Federal Inland Revenue Service establishes a new Large Tax Office
FIRS has established a new large tax office located in Apapa, Lagos, effective from 15th May 2020.
Federal Inland Revenue Service extends filing deadline for Common Reporting Standard
The Federal Inland Revenue Services (FIRS) on May 19, 2020, issued a public notice on the extension of the reporting deadline for Reportable Financial Institutions (RFIs), under the Common Reporting Standard (CRS) Regulations. The extension, which is effectively for 4 months, moved the compliance deadline from 31 May 2020 to 30 September 2020.
Nigeria’s Ministry of Finance has issued a new VAT Modification Order to clarify VAT exempt items
Further to the Finance Act (FA), 2019 which amended a number of provisions in the Value Added Tax (VAT) Act, the Federal Ministry of Finance has issued a Value Added Tax (Modification) Order, 2020 (the “Order”) with a commencement date of 3 February 2020.
FIRS Finance Act Circular: Clarifications on sundry changes to the Companies Income Tax Act
The Federal Inland Revenue Service (FIRS) has issued a circular to clarify some of the changes to the Companies Income Tax Act (CITA) introduced by the Finance Act (FA) 2019.
Nigerian Government Issues Amendments to Order on Voluntary Offshore Assets Regularisation Scheme (VOARS)
Nigeria’s President has issued an executive order amending the Executive Order 008 of 2018 on the Voluntary Offshore Assets Regularisation Scheme (VOARS). The Amendment Order is officially known as the Voluntary Offshore Assets Regularisation Scheme Amendments 2019 (the Amendment Order).
FIRS issues public notices on resumption of tax audit, language of record keeping and waiver of penalty and interest
More on these three notices can be accessed through the link.
Compiled by Mujeedah Alliyu , a 400 level student of faculty of law who has a budding interest in insurance and taxation. She also loves photography and art.