Tax & Business Matters - Nigeria

LIRS grants further COVID-19 reliefs to taxpayers

In order to give taxpayers ample time to file their tax returns amid the lockdown, the LIRS had in March 2020 issued a public notice extending the filing deadline from 31 March to 30 June 2020.

The LIRS has now introduced additional palliative measures in response to the impact of COVID-19.

Takeaway

The various measures introduced by the LIRS are laudable as they seek to address some of the challenges of COVID-19. Given the persistence of the uncertainties surrounding the COVID-19 induced economic challenges, tax authorities need to constantly keep the communication channels with taxpayers open and active to adapt and update their responses as may be necessary.

The granting of tax credits to individuals for donations made to support the fight against COVID-19 is equitable given that similar reliefs are available to corporate entities under the Companies Income Tax Act. However, the necessary legal instruments should be put in place to prevent any future challenges.

See our alert below and a copy of the LIRS notice for details:

Download PwC Tax Alert_LIRS COVID-19 Additional Palliatives_July2020

Download LIRS public notice_Addtional COVID-19 measures

Nigeria Immigration Service to issue electronic Temporary Work Permits

A Temporary Work Permit (TWP) approval is required for a skilled foreigner to perform employment duties in Nigeria on a temporary basis. Such foreigners must be sponsored by a company registered in Nigeria.

 

Formerly, the application had to be physically submitted and processed at the Nigeria Immigration Service (NIS) Headquarters, Abuja. If successful, an approval (TWP cable) would be issued by the Comptroller General of Immigration to the sponsoring company for its expatriate to utilise while applying for the TWP visa.

Read more from our alert below:

Download Immigration Alert_Electronic work permit

FIRS Begins Audit and Recovery of Back-Years Stamp Duties

An Inter-Ministerial Committee for the Audit and Recovery of Back-Years Stamp Duties has been inaugurated. Also the Federal Inland Revenue Service (FIRS) has launched an Adhesive Stamp for use on dutiable documents requiring adhesive stamps.

 

The committee is comprised of representatives from the FIRS, the Central Bank of Nigeria, the Federal Ministry of Justice and the Federal Ministry of Finance, Budget & National Planning. The committee is tasked primarily with enforcing Sections 110, 112 and 114 of the Stamp Duties Act (SDA) which empowers the Federal Government to recover stamp duty as well as accompanying fines and penalties for up to 5 years.

Read our alert below for further details:

Download PwC Tax Alert_Audit and Recovery of Back-Years Stamp Duties_30 June 2020