Nigeria: Suspended country-by-country reporting requirements for MNE branches and subsidiaries

A notice regarding the suspension of the CbC reporting obligations of MNE branches and subsidiaries

Suspension of the CbC reporting filing obligations of MNE branches and subsidiaries

The Federal Inland Revenue Service (FIRS) issued a notice suspending country-by-country (CbC) reporting obligations for branches and subsidiaries of multinational enterprises (MNEs) operating in Nigeria.

Regulation 4 of the “Income Tax (Country-by-Country (CbC) Reporting) Regulations, 2018” requires branches and subsidiaries of MNEs operating in Nigeria to submit their CbC reports to the FIRS when there is no automatic exchange of information mechanism existing between Nigeria and the country of residence of the “ultimate parent entity“ (UPE). 

Therefore, with suspension of Regulation 4, MNE branches and subsidiaries are not required to submit the CbC reporting information to the FIRS. 

However, the suspension of Regulation 4 does not affect members of MNEs whose UPE or surrogate parent entity is a resident of Nigeria; these entities must still file CbC reports in Nigeria. The suspension also does not excuse all relevant entities from continued compliance with other obligations—including the filing of an annual CbC notification.

KPMG observation

The suspension of the CbC report filing obligations of MNE branches and subsidiaries is aligned with Nigeria’s current status as a “non-reciprocal jurisdiction.” Currently, Nigeria provides CbC reports to the 61 exchange partners under the Multilateral Competent Authority Agreement for the exchange of CbC reports, but Nigeria does not receive any CbC reports from its exchange partners due to Nigeria’s non-reciprocal jurisdiction status.

Read a May 2021 report [PDF 674 KB] prepared by the KPMG member firm in Nigeria

 

 

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