FIRS Offers Concession To Taxpayers With Outstanding Foreign Currency Tax Liabilities

The Federal Inland Revenue Service (FIRS) has offered one-month concession for taxpayers with outstanding foreign currency tax liabilities to settle their financial obligations.

According to a statement by the Special Media Assistant to the Chairman of FIRS, Johannes Wojuola, the concession will take effect from the 1st of March to 31st March, 2022.

The statement said the Executive Chairman of the Service, Muhammad Nami had signed and released a Public Notice on the concession.

FIRS stated that the Service had received requests and enquiries from taxpayers on challenges being encountered in sourcing for foreign currencies to offset their outstanding tax liabilities.

“In view of the number of requests, enquiries and the challenges encountered by the taxpaying public in sourcing for foreign currencies to offset outstanding tax liabilities, the Federal Inland Revenue Service (“the Service”) wishes to inform our esteemed taxpayers that a one-month window has now been opened for this category of taxpayers to settle their foreign currency tax liabilities in Naira with effect from the 1st of March, 2022 to 31st of March, 2022,” the Notice read.

The Service explained that the concession was a one-off window because the law stipulates that Taxpayers should pay taxes in the currency they transact business.

“The extent provision is that the currency of the transaction should be the currency with which the tax is paid. However, this is a one-off window/concession, and the Service would no longer entertain any such request from the taxpaying public.”

The Notice further stated that: “The applicable rate shall be the Investors and Exporters (I&E) Foreign Exchange Rate of the Central Bank of Nigeria (CBN) prevailing on the date of the transaction and or when the tax obligation falls due.

“This concession is available to all taxpayers, covers all tax types, and all foreign currency tax liabilities falling due on or before 31st December 2021, except for companies in the Upstream (Oil & Gas) Sector, and the Petroleum Profits Tax.”

To benefit from this, taxpayers within this category are expected to make all payments before 31st March 2022 and upon payment, the relevant documents relating to the transaction together with the evidence of payment must be forwarded to the Office of the Executive Chairman, and a copy submitted to the local tax office where the taxpayer’s file is domiciled.