FIRS gives Nigerians one-month window to pay foreign tax liabilities in Naira

The Federal Inland Revenue Service has given a one-month window to Nigerians to settle their foreign tax liabilities in Naira.

In a statement signed by Special Assistant to the Executive Chairman, FIRS on Media & Communications, Johannes Wojuola, the window period runs from March 1 to March 30.

“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 FIRS said.

“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.”

According to the FIRS, this window covers all such liabilities that have falling due for payment on or before 31st December, 2021, and for all taxes except the Petroleum Profit Tax.

“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.”

Nigerians who wish to benefit from must forward the relevant documents relating to the transaction together with the evidence of payment to the Office of the Executive Chairman, and a copy submitted to the local tax office where the taxpayer’s file is domiciled after making payments before March 31.

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