FIRS Notice on Discontinuation of Issuance of Tax Exemption Certificates

The Federal Inland Revenue Service (FIRS) issued a Public Notice on 29 July 2025, announcing the discontinuation of the issuance of Tax Exemption Certificates (TECs) to taxpayers, specifically Pioneer Status Incentive (PSI) Companies, Non-Government Organization (NGO)s, and Free Zone Entities (FZE).

This development appears to have generated some uncertainty among affected stakeholders. Accordingly, it is important to clarify the practical implications of the notice as follows:

1. No Impact on Existing Tax Exemptions

The discontinuation of TECs issued by FIRS does not revoke or invalidate validly granted tax holidays to PSI companies or tax exemption claims by NGOs, and FZEs. The respective companies can continue to enjoy their tax incentives or tax exemption claims subject to applicable conditions.

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