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 position 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.

Kano State consumption tax overruled by Federal High Court

By a recent Federal High Court (FHC) ruling, the consumption tax imposed by Kano State Government on goods and services consumed within the state has been nullified. This is in addition to a perpetual injunction granted against the State Government from implementing the tax.

Federal Government reconstitutes the Tax Appeal Tribunal

The Minister of Finance recently announced the reconstitution of the Tax Appeal Tribunal (TAT), with the appointment of commissioners for the tribunals situated in Lagos, Abuja and each of the six geo-political zones.

Federal Ministry of Interior provides further directives on the full-automation process for applications

Following our earlier communication on the decision of the Federal Ministry of Interior (“FMI” or “the Ministry”) to automate the application processes for Business Permit/Expatriate Quota and Place of Worship, the Ministry has now communicated 3 September 2018 as the commencement date for the full online automation.

An overview of Nigeria’s 2018 Income Tax (Country by Country Reporting) Regulations

Background The Federal Inland Revenue Service (FIRS) recently released the Income Tax (Country by Country Reporting) Regulations, 2018 (“CbCR Regulations” or “the Regulations”), which marks yet another significant step by Federal Government of Nigeria in its quest to align the Nigerian tax system with outcomes of ongoing international tax reforms.