The Federal Inland Revenue Service (FIRS), in its bid to enhance efficiency in tax administration, is set to automate the process of filing transfer pricing (TP) returns. This initiative is aimed at improving the ease of doing business in Nigeria.
The e-filing platform for filing TP returns is expected to go-live in 2020. In a meeting with stakeholders on Friday, 27 September 2019, FIRS demonstrated the process of filing via the platform, when it is launched.
It is expected that this initiative will allow companies complete and file their TP disclosure forms, TP declaration forms and Country-by-Country (CbC) reports/notifications conveniently. The automated process is expected to run concurrently with the manual returns system, making it possible for companies to file their TP returns by submitting hardcopies at the relevant tax office.
This is a commendable initiative, which is expected to improve the filing process and eliminate all forms of bottlenecks for both taxpayers and FIRS. Companies that fall within the scope of the Nigeria’s TP and CbC reporting rules are advised to take advantage of the e-filing platform when it becomes operational in 2020.