Nigeria Tax Response to COVID-19

Nigeria’s economic response to COVID-19 has included a raft of varying initiatives. The Federal Inland Revenue Service on 23rd Mar announced a range of measures including extending the date for filing for VAT and withholding tax returns, from the 21st of each month to the last business day of the month. The measures additionally included the use of electronic systems for paying taxes and the electronic filing of tax returns by the taxpayer.

The House of Representatives additionally announced the Emergency Economic Stimulus Bill. This granted a tax rebate of 50% for companies that retain all their employees from March to December 2020. This bill also incorporates the suspension of import duties on medical equipment, medicine and PPE.

On top of these measures, Nigeria has also seen a waiver of the late returns penalty for late tax returns. The Firs have also extended Personal Income tax returns for military, overseas and non-residents from 31st Mar to 30th Jun.

Finally, the FIRS is set to resume Audits, Investigations and Monitoring Exercises, which were earlier suspended due to the Covid-19 pandemic. The FIRS stated that this will be a phased plan, and that field visits will commence on 30 Jun 2020.

GTU will keep you 100% up to speed with these fast-paced developments.