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Taxpayers to get one month concession

Taxpayers who have outstanding foreign currency tax liabilities can now take advantage of the Federal Inland Revenue Service (FIRS) one-month window to settle the liabilities in Naira, with effect from the 1st of March 2022 to 31st March, 2022.

A statement by the Executive Chairman, FIRS, Muhammad Nami, said the revenue service had received requests and inquiries from taxpayers on challenges being encountered in sourcing for foreign currencies to offset their outstanding tax liabilities.

The FIRS statement said the concession was a one-off window as the law has stated that the currency a taxpayer transacts in is the currency with which the tax is to be paid.

The Notice also stated: “The applicable rate shall be the Investors and Exporters (I&E) Foreign Exchange Rate of the Central Bank of Nigeria (CBN) prevailing on the date of the transaction and or when the tax obligation falls due.”

According to the Notice, the window covers all such liabilities that have fallen due for payment on or before December 31, 2021, and for all taxes except the Petroleum Profit Tax.

This concession is available to all taxpayers, covers all tax types, and all foreign currency tax liabilities falling due on or before December 31, 2021, except for companies in the Upstream (Oil & Gas) Sector, and the Petroleum Profits Tax.

Reporting by Biodun Dare; Editing by Daniel Adejo and Tony Okerafor