Nigeria releases revised transfer pricing regulation
The Federal Inland Revenue Service (FIRS), in exercise of powers conferred on it by Section 61 of the Federal Inland Revenue Service (Establishment) Act No.13 of 2007, has updated the Income Tax (Transfer Pricing) Regulations, 2012 (Old Regulations). The revised Transfer Pricing (TP) Regulations (the Revised Regulations) came into effect from March 2018 and the updates are first to be made to the TP Regulations in Nigeria since its introduction in 2012.
Tax authorities appoint banks as agents of collection of outstanding taxes from tax defaulters’ accounts
The Federal Inland Revenue Service (FIRS) and some State Internal Revenue Service (SIRS), in recent times, have been issuing letters to Nigerian banks, appointing them as agents of collection of taxes due from alleged tax defaulters. Based on the letters, the banks were instructed to:
Controversy trails Value Added Tax exemption on domestic airline services
In June 2018, the Federal Executive Council (FEC or the Council) announced its approval of two Executive Orders and five Amendment Bills touching on key provisions in the Nigerian tax and regulatory legislation. Please see link to our initial alert on the approval of the Executive Orders and Amendment Bills.
Loss of WHT credit looms as FIRS mandates reconciliation of WHT credit position in 15 days
Federal Inland Revenue Service (FIRS) has started inviting taxpayers for reconciliation of their withholding tax (WHT) credit positon with FIRS’ records summarised in the taxpayer’s K-Card (tax position card). This is necessary to ensure that taxpayers’ records with FIRS are up to date and K-Cards to be uploaded into FIRS’ Standard Integrated Government Tax Administration System are error-free.
Nigeria concludes double tax treaties with Ghana and Cameroon
The Federal Government of Nigeria (FGN) concluded the negotiation of Double Taxation Agreements (the DTAs) with the Republic of Ghana and the Republic of Cameroon on 26 July 2018 and 3 August 2018, respectively.
Federal Government releases 2018 Fiscal Policy Measures
The Federal Government of Nigeria (FGN) has approved and ordered the implementation of the 2018 Fiscal Policy Measures (2018 FPM), effective 27 July 2018. The 2018 FPM replaces the 2016 FPM which had been in force since 17 October 2016. Approval of the 2018 FPM, was communicated by the Honorable Minister of Finance vide a circular (“the Circular”) dated 5 July 2018.
Federal Government restricts issuance of visa to foreign engineers
President Muhammadu Buhari at a recent event in Abuja, stated that the Federal Government (FG) has commenced restriction of issuance of visa to foreigners seeking to take up engineering roles in Nigeria.
IFRS reporting – Matters arising on Derivatives
It is over six years that Nigeria adopted the International Financial Reporting Standards (IFRS) to align the country with global reporting. Initially, there was deep apprehension around the success potentials of the implementation roadmap. Some people/entities thought that the road map may be hitched and may have to be suspended at a point in time; but that is not the reality at this moment. The reality is that IFRS reporting has debuted successfully and every stakeholder (private and public sector) is expected to hone their understanding and skills for compliance with this global reporting framework.
Artificial Intelligence in Banking- Series 1
Despite the nascent stage of Artificial Intelligence (AI) adoption, its benefits are already being realised at many large banks across the globe. According to Tata Consultancy Services (TCS) research, “banking and FS executive found that investment in AI helped them reduce production costs by 13%. Additionally, executives reported a 17% average revenue increase in the area of their AI initiatives”. At one European bank, a shift from statistical regression to machine learning for credit analysis increased mortgaged collections by over 30%
Individuals working on the Nigerian offshore oil-drilling platforms – Who gets the tax?
Nigeria operates a federal system of government. Governing bodies at the centre differ from governing bodies in the sub-units (states). This dichotomy also impacts tax administration, with the Federal Inland Revenue Service (FIRS) overseeing taxation of companies, non-resident individuals etc., and State Boards of Internal Revenue (SBIRs) administering taxation of individuals resident within its territory.