FIRS issues Nigeria’s Country-by-Country Reporting Regulations

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, and all other powers enabling it, has issued the Income Tax (Country by Country Reporting) Regulations, 2018 (the CbCR Regulations). The CbCR Regulations take effect from 1 January 2018, and form part of the enhanced tax disclosure requirements set out by Action 13 of the Base Erosion and Profit Shifting (BEPS) project. The Regulations aim at providing tax authorities with improved information to enable them better assess international tax avoidance risks. Under the CbCR Regulations, where the Ultimate Parent Entity (UPE) or a Constituent Entity (CE) of a Multinational Enterprise Group (MNE Group) is tax resident in Nigeria, such Nigerian resident entity will be required to file a Country-by-Country Report (CbC Report) with FIRS for an accounting year where the Group has a…

Guide to Fiscal Information – Key Economies in Africa 2018

The latest publication of the Guide to Fiscal Information – Key Economies in Africa 2018 is now available to download. 

FEC approves Executive Orders on VAT and Excise Duties alongside five Amendment Bills

In a show of commitment towards reducing the tax burden and improving the ease of doing business for taxpayers, the Federal Executive Council (FEC or the Council) has approved two Executive Orders and five Amendment Bills touching on key provisions in the Nigerian tax and regulatory legislation. This communication was released by the Minister of Finance, Mrs. Kemi Adeosun, after the Council meeting on Wednesday, 6 June 2018.

Cost Contribution Arrangements (“CCAs”)

Managing conflicts between domestic laws and adopted international tax guidelines and best practices in Nigeria The last six years have witnessed significant efforts by Nigeria to align its domestic tax laws and regulations with international initiatives on modernization of its tax principles and enhancement of transparency and disclosure requirements. These efforts included the introduction of Income Tax (Transfer Pricing) Regulations No.1 in August 2012 (“TP Regulations”), which adopted international best practices for determining the arm’s length/market value of transactions between related parties. Nigeria has also been participating in global initiatives aimed at tackling tax evasion and tax revenue leakages.

Economic Recovery and Growth Plan (ERGP): An assessment of the journey so far

The Economic Recovery and Growth Plan (ERGP) is a medium term all-round developmental initiative focused on restoring growth, investing in people and building a globally competitive economy. The ERGP was launched in April 2017. Precisely one year after its implementation, we examine the performance of the Plan in line with set execution principles in the table below.

The Continental Free Trade Agreement: Is no deal the right deal for Nigeria?

On 22 March 2018 in Kigali, Rwanda, Heads of State of forty-four African countries, gathered to sign the African Continental Free Trade Agreement (“AfCFTA” or “the Agreement”), the landmark agreement which amongst others aims to liberalize trade across Africa.

FEC Approves Revised National Tax Policy

Nigeria announces three-month extension of tax amnesty programme

President Muhammadu Buhari has approved the extension of the Voluntary Assets and Income Declaration Scheme (VAIDS or the Scheme) by three months. The Scheme which originally lasted for 9 months and expired on 31 March 2018 will now run till 30 June 2018. As the original deadline was premised on an executive order, a fresh executive order will be issued to give legal backing to the new timeline.

Nigeria’s new excise regime: Is this the right time?

Barring any last minute reversal, locally manufactured tobacco and alcoholic beverages (“Excisable Products”) will be subject to a new excise regime from 4 June 2018. This new regime is pursuant to Section 13 of the Customs, Excise Tariff Etc. (Consolidation) Act which enables the Nigerian President to impose, vary or remove any import or excise duty.

IFRS 15 – Revenue from contracts with customers

Board consideration As with any new IFRS implementation, board oversight at an early stage and on an ongoing basis is critical. In order to ensure an effective and efficient implementation process, it is imperative that the board remains engaged in this process and sets the tone for the entity.

Lagos State Government announces changes to the Land Use Charge Law

The Lagos State Government (LASG) has announced revisions to provisions of the Land Use Charge Law 2018 (LUC Law); principally covering a reduction in land use charge (LUC) payable on various categories of property in Lagos State.