Tax & Business Matters - Nigeria

A new law has been enacted to establish the FCT Internal Revenue Service

We understand that the harmonised bill recently passed by the National Assembly, which seeks to establish an independent Internal Revenue Service for the Federal Capital Territory, Abuja has been signed into law.

Before now, tax administration of the FCT was under the Federal Inland Revenue Service. With this development, the FCT IRS will function like those in any of the 36 states of the federation. It is expected that there will be more focus on internally generated revenue drive and enforcement of compliance like never before. 

Watch this space for further details.   

A new TAT ruling requires FIRS to accept tax returns prepared by parties to Production Sharing Contracts

The Tax Appeal Tribunal (TAT) on 20 March 2015 held that the Federal Inland Revenue Service (FIRS) should consider tax computations prepared by parties to a Production Sharing Contract (PSC) in assessing PSC parties to Petroleum Profits Tax (PPT). This is a major shift from the past practice where the Nigerian National Petroleum Corporation (NNPC) solely determines tax payable by PSC parties and lifts tax oil based on its own tax computations.

See our tax alert below and a copy of the judgment for details.

Download Tax Alert_Ruling on PSC parties filing of PPT returns

Download TAT Ruling_Filing of PPT returns by parties to PSCs

May 2015 Tax Calendar

Another quick reminder to keep an eye on your tax returns and payment deadlines for the month of May.

Download Tax Calendar_May 2015