The COVID-19 Pandemic is not just a global public health crisis, it has also severely affected the global economy and financial markets, disrupting lives, communities, governments and businesses at large. For instance, governments and businesses have adjusted their outlook for 2020, with many taking aggressive measures to stay afloat. Despite their efforts, many businesses were unable to survive.
To cushion the impact of the Pandemic, the Federal Government of Nigeria (FGN) and other agencies of government have been providing stimulus packages and palliative measures. Specifically, in the tax landscape, measures like deferment of tax payment, the extension of filing timelines, waiver of penalties/interest have been provided to businesses. While these measures have helped manage the impact of the crisis, more action is required if businesses in Nigeria are to recover sustainably.
From a personal income tax perspective, the Organisation for Economic Co-operation and Development (OECD) has encouraged countries to work together to assuage the unplanned tax implications and potential new tax burdens created by the current crises such as employees overstaying in foreign countries due to the shutdown of national borders. Employees working outside their host countries are expected to work remotely for business continuity purpose.