The Federal Inland Revenue Service (FIRS) announced it has established an office specifically to address issues concerning non-resident taxpayers.
According to an FIRS release, the new tax office will aim to enhance tax certainty, promote voluntary compliance, reduce tax disputes, and avoid double taxation related to non-resident corporate and individual taxpayers (that is, those subject to tax in Nigeria under provisions of the Companies Income Tax Act and the Personal Income Tax Act).
Beginning 1 January 2020, all non-resident taxpayers (corporate and individuals) will be required to submit their tax returns, correspondence, and enquiries to the new non-resident taxpayer office located in Lagos.
The creation of a specialized tax office for non-resident taxpayers is intended to simplify tax administration and to improve voluntary compliance by taxpayers. Previously, non-resident taxpayers were assigned to different FIRS tax offices based on the size of their turnover and industry (in particular, non-resident companies operating in the oil and gas industry). Although the public notice establishing the new special tax office does not specify whether the FIRS will automatically transfer non-residents’ tax files to that office, any non-resident taxpayers may want to consider proactively engaging with the FIRS to provide for a seamless transition. In particular, some believe it may be necessary for the FIRS to clarify how it intends to address certain potential challenges for non-resident persons operating outside Lagos State.
Read an October 2019 report prepared by the KPMG member firm in Nigeria
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