FIRS; Simplifying Tax Compliance Through ICT Initiatives – Part 2

“The Federal Inland Revenue Service (FIRS) in its bid to continuously provide online real-time tax payment transactions, provided the online payment platforms and applicable payment options for taxpayers. The various platforms ensure transparency in tax payment system, boost taxpayer confidence, trust in the tax system and promotes voluntary compliance by taxpayers”.

Electronic Payment Initiatives:

The Federal Inland Revenue Service (FIRS) in its bid to continuously provide online real-time tax payment transactions, provided the online payment platforms and applicable payment options for taxpayers. The various platforms ensure transparency in tax payment system, boost taxpayer confidence, trust in the tax system and promotes voluntary compliance by taxpayers. It provides convenience, timeliness and cost savings for taxpayers as they can pay their taxes via self-service channels provided by these platforms within the confines of their offices or homes without going to the banking hall. The platforms are user friendly, safe and secure and are threefold as follows:

1. FIRS PayDirect, provided by Interswitch Limited (Legacy tax payment channel), operates from bank branches and requires taxpayers to go to a bank branch for processing and payment of taxes.

2. FIRS E-Tax Pay Solution, provided by NIBSS Plc (Operational), is a self-service channel available to taxpayers from the comfort of their homes or offices. It is available on internet banking facility hosted by commercial banks internet banking platforms in Nigeria. It is also available at bank branches for taxpayers who choose that route.

3. FIRS REMITA Online, provided by SystemSpecs Limited (Operational), is an online self-service channel available to taxpayers from the comfort of their homes or offices. It is also available on internet banking platforms, bank accounts, cards and mobile wallets. The Remita platform provides six (6) payment channels for taxpayers/MDAs (Government Ministries, Departments and Agencies) to meet their obligations of paying taxes with ease, and in a timely manner namely: at any bank branch, the bank’s internet banking site, with debit/ credit cards (MasterCard, Verve, Visa), digital wallet/ mobile money, selected microfinance banks, and existing Remita users directly on the platform (www.remita.net). Remita requires registration and instant generation of the RRR (REMITA Retrieval Reference) number to process transactions.

Payment of taxes through these platforms is possible as long as the taxpayer has a Tax Identification Number (TIN), bank account, access to the bank’s internet banking platform and adequate funds in the bank account.

After a successful transaction, the system will generate an ‘e-acknowledgement’ which can be printed online, or sent to a specified e-mail address. The ‘e-acknowledgement’ is a confirmation of the transaction of payment of tax to FIRS which would be presented to FIRS field office for the issuance of statutory FIRS receipt to the taxpayer.

Real time notifications: These platforms also provide real time notifications to the taxpayer and FIRS through SMS alert and real time email. FIRS can also view payment transactions and reports online real time. The links to the various e-Tax payment platforms can be accessed via https://www.firs.gov.ng/aboutus/Pages/e-tax-payments.aspx.

Payment of Tax through e-Tax pay on the Internet Banking Platform of a Collecting Commercial Bank
To pay tax through the e-Tax pay internet banking platform, the taxpayer needs to follow these easy steps:

• Log on to the internet banking platform of his/her bank.
• Locate the ‘payment & collections’ tab, click and then select ‘NIBSS Ebills payments’. Afterwards, click on ‘New Request’. (Note- here, GTBank internet banking platform is the demo payment platform. Other banks’ or tax remittance platforms might appear different).
• Input the answer to his/her secret question, then click ‘continue’ and ‘ok’ on the pop up box.
• It redirects to the third party payment platform. There, the user can either search for ‘FIRS’ under ‘search a biller’ or click on the ‘FIRS e-tax Pay’ among the tabs of billers to select ‘FIRS’.
• Input the tax identification number (TIN) of payer (oneself, ones’ organisation or a third party). Please note that user can also pay for a third party company or person from his/her internet banking platform. User will therefore need to type-in the TIN of the actual payer. Afterwards, click ‘verify’.
• The full name, tax office and business address of the owner of the TIN inputted will then be displayed for user’s confirmation (user should ensure that the name displayed matches the intended payer). Click ‘continue’ when the payer has been confirmed.
• Click the drop down arrow to choose the tax type intended to be paid, and then click ‘continue’.
• Input the amount payable on the next page and click ‘continue’ again (please note that payments on this platform can only be made in ‘Naira’). Taxes that can be paid through the platform include: Capital Gains Tax, Companies Income Tax, Tertiary Education Tax, National Information and Communication Technology Development Fund Levy, Pay-As-You-Earn, Interest and Penalties, Personal Income Tax, Pre-operational levy, Petroleum Profit Tax, Provisional Tax, Stamp Duty, Withholding Tax, Value Added Tax, Annual Luxury Surcharge, Foreign Travel Surcharge, NASENI Levy.
• After choosing the tax type to be paid, the system redirects to the user’s internet banking platform where the payment would be completed by inputting the user’s token generated code. The e-receipt or e-acknowledgement will be generated for printing afterwards.

The e-Tax Pay service is safe and secure. The e-Tax Pay platform leverages on the security measures provided by the service channels of the banks. The system through NIBSS validates taxpayer’s information against FIRS records and automatically notifies FIRS.

Payment of Tax through Remita on the Internet Banking Platform of a Collecting Commercial Bank
Where ‘Remita Payment’ platform is selected by user or taxpayer, the following steps should be taken:

• Log on to the internet banking platform of the bank.
• Locate the ‘payment & collections’ tab, click it, then select ‘Remita Payment’.
• Click ‘make new payments’.
• Choose to ‘Pay Registered Remita Billers’. This takes user to the Remita window.
• Input the tax details. *Note that payments can only be made in Naira.
• Generate and copy the ‘Remita Retrieval Reference’ No (RRR).
• Return to the bank’s online platform and paste the RRR plus the name of depositor.
• Click ‘continue’.
• Complete the form on display and click ‘pay’.

To be continued…