Tax & Business Matters - Nigeria

A new Executive Order on Voluntary Offshore Assets Regularisation Scheme (VOARS) has been introduced

A new Executive Order (008) which takes effect from 8 October 2018 has been signed by President Muhammadu Buhari.

According to the new order, eligible persons who hold offshore assets and income are expected to declare voluntarily within 12 months and pay either a one-time levy of 35 percent or the applicable taxes plus penalties and interest. 

Benefits to taxpayers who take advantage of the scheme include immunity from prosecution for tax offences and illicit offshore assets. Persons already under investigation for financial crimes or other corrupt practices in respect of such offshore assets are not eligible.

FIRS Issues Public Notice on New TP Regulations and Guidelines on TP Documentation

Following the introduction of the Income Tax (Transfer Pricing) Regulations, 2018 ("TP Regulations") in August, the FIRS today (3 October 2018) issued a public notice to taxpayers and the general public on the Regulations. The public notice reaffirms that the Regulations are effective from 12 March 2018 and that non-compliance will attract the penalties contained in the relevant provisions of the Regulations. 

 

 

The highlight of the notice is the fact that the FIRS has granted taxpayers up to 31 December 2018 to discharge all their outstanding obligations (i.e. file TP declarations, make disclosures of controlled transactions, submit TP Documentation etc.). Failure to do this by 31 December 2018 will attract the full penalties contained in the Regulations.   

 

In addition to the public notice, the FIRS also released the Guidelines on Transfer Pricing Documentation. You can read our alert and download the Public Notice and Guidelines here. 

 

Download PwC Tax Alert_FIRS public notice & guidelines on new TP regulations_Oct 2018

Download FIRS Guidelines on TP Documentation_Oct2018

Download FIRS Public Notice on 2018 TP Regulations