FIRS Sets December 31 as Deadline for Shipping Firms on Tax Compliance

International shipping companies operating in Nigeria will align their financial records with the Federal Internal Revenue Service (FIRS) between now and December 31.

This warning was announced by the chairman of FIRS, Zacch Adedej, in a joint workshop in Lagos organized by FIRS and the Oil Producers Trade Section (OPTS). In the meeting, the service head said that non-domesticated companies transporting Nigerian crude oil must adhere strictly to the country's tax regulations. 

The move to set records for international operators carrying out their business in Nigeria is due to the government's plans to expand its tax base and boost government revenue to examine the activities of foreign shipping companies engaged in lifting hydrocarbons from Nigeria.

The Special Adviser on Media, Dare Adekanmbi, clarified that the FIRS aims at ensuring compliance with existing tax laws and also boost international companies' interest as he stated categorically that the federal government does not plan on disrupting their operations.

He said,

• The Federal Government aims to elevate Nigeria’s tax to GDP ratio to 18% in the coming three years without imposing additional taxes but by expanding the tax base.

He emphasized the need for international companies to promptly adhere to Nigerian tax laws, highlighting the government's focus on stakeholders’ concerns regarding tax compliance exercises in the oil, gas, and maritime sectors.

Adedeji talked about the prior intervention, which led to a six-month grace period granted to non-resident shipping companies to regularize their tax status. He said that the grace period stops at the end of this year.

Talking about the importance of the collaboration, Adedeji stressed FIRS's commitment to resolving assessment notices served on any taxpayer, affirming the agency’s preparedness to enforce Nigerian tax laws while safeguarding taxpayer rights.