Nigeria: Dormant companies to regularise outstanding returns by 30 June 2020

Nigeria: Dormant companies, outstanding returns

The Federal Inland Revenue Service (FIRS) issued a notice requesting all dormant companies to “regularise” all their outstanding returns by 30 June 2020.

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The FIRS is collaborating with other government agencies—such as the Nigerian Financial Intelligence Unit, Corporate Affairs Commission, and Money Deposit Banks—to determine that taxpayers duly comply with the provisions of the tax laws.

A dormant company is defined as “a company that has informed the FIRS of its temporary cessation of business activities due to understandable exigencies for a minimum of one financial year.” The FIRS noted that any dormant company that fails to regularise its outstanding tax returns by 30 June 2020 will face enforcement actions, including de-listing the defaulting company from the list of incorporated companies and placing a lien on its bank account(s). 

The FIRS further noted that dormant companies are permitted to submit “statement of affairs” in lieu of audited financial statements for the purpose of regularising their tax status.

KPMG observation

Subject companies need to determine that they prepare and file all outstanding value added tax and corporate income tax returns by the 30 June deadline.


Read a June 2020 report [PDF 133 KB] prepared by the KPMG member firm in Nigeria

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