Nigeria: One-month window ends 31 March 2022 for payment of foreign currency tax liabilities in naira
The concession is subject to certain conditions.
Payment of foreign currency tax liabilities in naira
The Federal Inland Revenue Service (FIRS) issued a public notice announcing a one-month window from 1 March 2022 to 31 March 2022 for taxpayers to offset outstanding foreign currency tax liabilities due from 1 January 2022 with Nigerian currency (naira) equivalent.
The one-off relief or concession was granted in response to requests from taxpayers that report having experienced challenges in obtaining foreign currencies to offset their foreign currency-denominated tax liabilities.
The concession is subject to the following conditions:
- The applicable exchange rate will be the Central Bank of Nigeria’s investors and exporters foreign exchange rate prevailing on the date of transaction and/or the due date for payment of the tax liability.
- The concession applies to all taxpayers except companies in the upstream oil and gas sector, and covers all taxes except foreign currency tax liabilities that were due on or before 31 December 2021.
- The outstanding taxes must be paid before the 31 March 2022 deadline.
- Copies of the relevant transaction documents and evidence of payment of the taxes must be submitted to the appropriate tax offices.
Read a March 2022 report prepared by the KPMG member firm in Nigeria
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