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.


Related content

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

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal