The Income Tax (Transfer Pricing) Regulations, 2018 – Is this a game changer?
With the release of the Income Tax (Transfer Pricing) Regulations, 2018 (“2018 TP Regulations”) on 27 August 2018, Nigeria took yet another very bold step in its quest towards adopting and implementing recent international multilateral initiatives. These initiatives, aimed at enhancing tax disclosure rules and tackling tax evasion, arose from the Base Erosion and Profit Shifting (“BEPS”) program.
Federal Inland Revenue Service releases Country by Country notification form
Federal Inland Revenue Service (FIRS) has released, via a public notice, a standard notification form to be used by multinational entities (MNEs) in providing Country-by-Country (CbC) notifications. The requirement to file CbC notifications is in line with Regulation 6 of the Income Tax (Country by Country Reporting) Regulations 2018 (the Regulations).
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.
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.