Nigeria: FIRS Extends Deadline For Submission Of Income Tax Returns And WHT Credit Notes To 31st July 2021

Summary

On 1^st July 2021, the Federal Inland Revenue Service (FIRS or "the Service") issued a Public Notice informing taxpayers of its grant of extension to the deadline for filing Companies Income Tax returns (CIT) and uploading of Withholding Tax (WHT) credit notes by one month. Based on the FIRS's Notice, companies with 31 December year-end can now submit their CIT returns which were due on 30^th June 2021 by 31^st July 2021 and the due date for submitting regular WHT credit notes which the FIRS also requested to be done by 30^th June has also been extended to 31^st July 2021.

Details

The Notice was issued in furtherance to the recent introduction of the FIRS online Tax Administration Solution- TaxProMax (Read our tax alert on this  here).

The FIRS introduced the TaxProMax Solution (the Solution) to ease compliance for taxpayers in the fulfillment of their statutory obligations. The Solution amongst other things enables taxpayers to pay their taxes, file returns and upload WHT credit notes. Following the introduction of the Solution, the FIRS also requested that all WHT credit notes be uploaded on the TaxProMax portal by 30^th June 2021.  However, taxpayers have encountered challenges in using the Solution to file their tax returns and upload WHT credit notes. This has led to a delay in complying with the filing deadlines for some taxpayers.

Based on the foregoing, the FIRS via the Public Notice has extended the deadline for filing CIT returns and suspended the application of interest and penalties from 30^th June 2021 to 31^st July 2021, provided the taxpayer concludes their filing on the TaxProMax Solution and pays the tax due using the Payment Reference Number (PRN) within this period.  In addition, the period for uploading WHT credit notes on the TaxProMax has been extended by one month to 31^st July 2021.

The Notice further states that the FIRS has set up a Situation Room for resolving issues arising from the use of the TaxProMax on real-time basis and has upgraded the TaxProMax as follows:

• Payment on Account:  This would enable taxpayers to pay tax on account pending an assessment and the system will apply the tax paid in advance to future assessments.

• Validity of Payment Reference Number (PRN) formerly Document Identification Number (DIN):  Taxpayers' PRN will remain valid until midnight of the due date of filing of the relevant tax return.

• Branch Payment:  Companies can now make Value Added Tax (VAT) and WHT payments using the Branch Tax Identification Number (TIN). This applies only to VAT and WHT payments.  CIT returns must be filed using the company TIN for the Tax Office hosting the main tax file.

Implication

The extension of the filing deadline and suspension of penalty and interest is a welcome and timely intervention as it affords taxpayers experiencing difficulties in filing their income tax returns the time to do so without incurring penalty and interest.

The upgrade of the TaxProMax Solution to address taxpayers challenges is also commendable. In this regard, taxpayers are advised to note that the extension applies only to  companies that conclude their filing on the TaxProMax Solution and pay the tax due using their PRN not later than 31^st July 2021. Taxpayers are therefore advised to take advantage of the extension period to file their returns and pay their due taxes.

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