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