FIRS gives month deadline for taxpayers to settle foreign currency tax liabilities

The Federal Inland Revenue Service has announced that a one month window has been opened from the 1st to 31st of March 2022 to enable taxpayers to settle foreign currency tax liabilities in naira.

This was disclosed in a statement titled, “Payment of Outstanding Foreign Currency Tax Liabilities in Naira”, signed by the Executive Chairman of the FIRS, Muhammad Nami on Friday.

He said the concession is available to all taxpayers and tax types, except for companies in the Upstream Oil and Gas sector.

Nami stated that in view of the numbers of enquires and challenges encountered by taxpayers in sourcing for foreign currencies to offset outstanding tax liabilities, the FIRS has now opened for taxpayers to settle their foreign currency tax liabilities in naira with effect from the 1st of March, 2022 to 31st of March, 2022.

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“The extant provision is that the currency of the transaction should be the currency with which the tax is paid. However, this is a one off window’ concession, and the service would no longer entertain any such request from the taxpaying public.

The Service added that the rate that would be applicable will be the Investors and Exporters window of the Central Bank of Nigeria which opens the concession to all taxpayers and covers all tax types, except for companies in the Upstream Oil and Gas sector.

FIRS urged that all payments must be made before the 31st of March, 2022 and upon payment, the relevant documents relating to the transaction together with the evidence of payments must be forwarded to the Office of the Executive Chairman, and another submitted to the local tax office.