Nigeria releases new Executive Order to combat money laundering and tax evasion
The Federal Government of Nigeria, on 8 October 2018, signed a new Executive Order 008 (Order) backing the implementation of the Voluntary Offshore Assets Regularisation Scheme (VOARS or the Scheme), aimed at combating money laundering and tax evasion. The Scheme took effect from 8 October 2018 and will cover a period of twelve months.
Gas Flaring Charge in Nigeria – Is FHC’s decision in Mobil v. FIRS good law?
Exploration and production (E&P) companies often encounter challenges with the Tax Authority on tax deductibility of gas flaring expenses incurred in the process of their oil and gas production activities.
Value Added Tax Modification Order for the Power Sector
Federal Government of Nigeria (FGN) is poised to change the face of VAT in the power sector with the Value Added Tax (VAT) (Modification) Order 2018 (the Order), which seeks to provide clarity on the applicability of VAT for operators in the Nigeria Electricity Supply Industry (NESI).
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.