FIRS: Tax payers get 30 days to settle FOREX liabilities in naira

The Federal Inland Revenue Service, FIRS, has given tax payers with foreign currency liabilities a period of one month to pay them in naira.

This was contained in a statement signed by FIRS Executive Chairman, Muhammad Nami.

According to the statement, the one-month window was given due to “challenges encountered by the taxpaying public in sourcing for foreign currencies to offset outstanding tax liabilities.”

The window which starts on March 1, ends on March 31.

“The extant provision is that the currency of the transaction should be the currency with which the tax is paid. However, this is a one-off window/concession, and the Service would no longer entertain any such request from the taxpaying public,” part of the statement read.

“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.”

The statement however said companies in the Upstream (Oil & Gas) sectors are excluded from the concession.

All tax liabilities incurred before December 31, 2021 are also excluded.

“All payments must be made before the 31st of March, 2022 and upon payment, the relevant documents relating to the transaction together with the evidence of payment must be forwarded to the Office of the Executive Chairman, and a copy submitted to the local tax office where the taxpayer’s file is domiciled,” the statement also added.