The Federal Inland Revenue Service (FIRS) has put in place several initiatives aimed at transforming the tax administration processes in Nigeria. In this regard, it has introduced a Tax Administration Solution (TaxPro-Max), aimed at easing tax compliance in Nigeria, which it communicated to the general public via a Public Notice (the Public Notice).
TaxPro-Max is an online platform that has been developed to enable seamless tax registration, filing, payment and automatic recognition of tax credits in taxpayers’ accounts, amongst other features. It also provides taxpayers with a single view of all transactions with the FIRS. The FIRS stated that the platform is currently running and available to taxpayers.
As noted in the Public Notice, FIRS has communicated an effective date of Monday, 7 June 2021. TaxPro-Max is accessible via www.taxpromax.firs.gov.ng and will be the channel for filing Naira-denominated tax returns. With the new process, taxpayers will be required to file their tax returns on TaxPro-Max which enables them to generate a “Document Identity Number (DIN)”. The DIN is then used by the taxpayer to make the tax remittances.
To ease the transition from the current practice of filing printed tax returns at FIRS’ offices, FIRS has made provision for taxpayers interested in submitting printed tax returns to liaise with their respective tax offices. The tax offices will assist the taxpayers with uploading the tax returns to TaxPro-Max and subsequent generation of the required DIN for tax payment. However, taxpayers must do this at least two (2) weeks before the filing deadline to give reasonable time for upload of the tax returns and generation of the DIN.
This initiative is a step in the right direction but the following needs to be addressed:
- The platform is not able to provide taxpayers with the access to view and/or download their unutilized withholding tax credit notes
- Inability of the platform to process filing of foreign currency-denominated tax returns. While section 55(4) of the Companies Income Tax Act and section 10(3) of the Value Added Tax Act requires submission of tax returns in foreign currency, taxpayers will need to continue the current practice of filing such tax returns manually pending enhancement of TaxPro-Max
- Inability of the platform to support the filing of self-charged value-added tax (VAT) returns. Taxpayers intending to file VAT returns on transactions with non-resident suppliers and entities below the VAT registration threshold would have to resort to manual filing pending enhancement of the platform
- Incorrect calculation of VAT penalty from the 21st day of the month contrary to FIRS’ COVID-19 business continuity palliative which extended VAT filing till the last working day of each month.
Taxpayers are encouraged to escalate any challenge to FIRS’ TaxPro-Max support email via firstname.lastname@example.org. Also, taxpayers who are yet to register on the TaxPro-Max are implored to complete the taxpayer’s update form and submit a fully executed copy of the form to their respective tax file dominated FIRS’ tax office, after which FIRS creates a user credential (username and password) for taxpayer’s use.