FIRS suspends implementation of Regulation 4 of the Income Tax (Country-by-Country Reporting) Regulations, 2018

The Federal Inland Revenue Service (FIRS) recently issued a Public Notice (“the Notice”) suspending the local filing obligations under Regulation 4 of the Income Tax (Country-by-Country (CbC) Reporting) Regulations, 2018 (“the Regulations”) for branches and subsidiaries of Multinational Enterprises (MNEs) operating in Nigeria.

Regulation 4 requires branches and subsidiaries of MNEs operating in Nigeria to submit their CbC Returns to the FIRS, where no Automatic Exchange of Information exists between Nigeria and the Ultimate Parent Entity (UPE)’s country of residence. Therefore, with the announced suspension, affected MNEs are no longer obligated to submit such information to the FIRS.

The FIRS, however, noted that the suspension of Regulation 4 does not affect members of MNEs whose UPE or Surrogate Parent Entity is resident in Nigeria from filing their CbC reports in Nigeria. Further, the suspension does not preclude all relevant entities from continued compliance with other obligations, including the filing of annual CbC notification, provided under the Regulations.


The suspension of local CbC filing obligations aligns with Nigeria’s current status as a “non-reciprocal jurisdiction”. Currently, Nigeria sends CbC reports to its 61 exchange partners under the Multilateral Competent Authority Agreement on the exchange of CbC report, but will not receive any CbC reports from its exchange partners due to its status.

It, therefore, behoves the FIRS to continue to negotiate arrangements for the exchange of CbC reports with more jurisdictions and introduce appropriate measures to change its current status as a non-reciprocal jurisdiction. It is hoped that once this is achieved, it will improve the country’s tax administration and reinforce its commitment to tax transparency in line with global standards.

Please click here to read the FIRS’ Public Notice.

For further enquiries, please contact:

Wole Obayomi