Share with your friends

Nigeria: Tax and transfer pricing returns for calendar-year companies due 31 July (COVID-19)

Nigeria: Tax and transfer pricing returns

Taxpayers that use the calendar year and required to file transfer pricing returns have until 31 July 2020 to submit their transfer pricing returns.


Related content

The Federal Inland Revenue Service (FIRS) provided a one-month extension of the due date for companies to file their companies income tax returns, and companies with a 31 December year-end now have until 31 July 2020 to submit their returns and pay their tax liabilities for 2020. No interest or penalties will be imposed for timely filed returns and payments of tax. Read TaxNewsFlash

The additional time was provided in response to challenges presented by the coronavirus (COVID-19) pandemic.

The Income Tax (Transfer Pricing) Regulations, 2018 require a “connected person” to file its statutory transfer pricing returns within six months from the company’s accounting year-end. This implies that a connected person with 31 December year-end would be required to file its transfer pricing returns for 2020 by 30 June 2020.  

However, because transfer pricing returns are an integral part of the annual companies income tax return, taxpayers are expected to file their transfer pricing returns along with the companies income tax return by the extended deadline of 31 July 2020.

Timely filing will avoid a late-filing penalty of ₦10 million, in the first instance, and ₦10,000 for every day in which the failure continues. 

Read a June 2020 report [PDF 487 KB] prepared by the KPMG member firm in Nigeria

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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