In a move that is practical, empathetic and brilliant for Nigeria’s revenue generation drive, the Federal Inland Revenue Service (FIRS) has offered soft landing for traumatized tax payers who have been running from pillar to post, trying hard to source, without success, for foreign exchange to settle their foreign currency-based tax liabilities to Nigeria.
In a Public Notice signed by the Executive Chairman, FIRS, Mr. Muhammad Nami, and sighted by The Dream Daily Newspaper on Thursday, 3 March 2022, the FIRS brought relief to the category of tax payers concerned by opening a one-month window of grace for them to pay their forex-denominated tax liabilities in Naira.
The one-off offer starts on 1 March, 2022 and ends on 31 March, 2022.
The FIRS public notice entitled, “Public Notice: Payment Of Outstanding Foreign Currency Tax Liabilities In Naira” reads in full:
“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 extant 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 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 and covers all tax types, except for companies in the Upstream (Oil & Gas) Sector and all foreign currency tax liabilities falling due on or before 31st December, 2021.
“All payments must be made before the 31st of 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.
“Further enquiries should be directed to the Executive Chairman, Federal Inland Revenue Service, Revenue House, 15 Sokode Crescent, Wuse Zone 5, Abuja.”
Below is a facsimile copy of the public notice:
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