FIRS’ Tax Waiver Window; Guide to Filing Tax Returns – Part 3

The Federal Inland Revenue Service (FIRS), in its mandate to administer the different taxes / tax laws and to enhance tax revenues, has recently approved a tax waiver of penalty and interest on taxes due to FIRS between 2013 and 2015. The waiver is available on application, to all taxpayers, beginning from 5th October 2016 and terminating on 24 November 2016.

F. Withholding Tax (WHT) Returns
Withholding tax returns must be filed with the relevant Tax Authority by persons and bodies required to deduct and remit withholding Tax.
• In the case of withholding tax
deducted from payments due to all
limited liability companies, the
relevant Tax Authority is Federal
Inland Revenue Service (FIRS).

• In the case of individuals and
unincorporated entities operating
in the Federal Capital Territory (FCT)
Abuja, the relevant Tax Authority is
FIRS.

• In the case of non-resident
individuals and companies, the
relevant Tax Authority is FIRS.

• In the case of withholding tax
deducted from payments due to
individuals and unincorporated
entities outside the FCT, the returns
should be filed with Tax Authority of
the relevant State, where the
individual who suffers the
withholding tax is resident.

Contents of the WHT Returns
• Schedule of withholding tax deducted showing:
• Period covered,
• Name, address and Tax Payer
Identification Number (TIN) of each
supplier (beneficiary), nature of
supply,
• Gross amount of the supply,
• Withholding tax rate,
• Amount of tax deducted,
• TIN of the company or organization
making the remittance.
• Evidence of payment.

Due date for Filing WHT Return
In the case of companies other than Petroleum Companies withholding tax returns are filed within twenty-one (21) days from the date the amount was deducted or the time the duty to deduct arose.
In any other case including Petroleum Companies, withholding tax returns are filed within thirty (30) days from the date the amount was deducted or the time the duty to deduct arose.

G. Tertiary Education Tax (EDT) Returns
The returns for Education Tax are rendered along with those of Companies Income Tax or Petroleum Profit Tax as the case may be, in a form prescribed from time to time by FIRS. Tertiary Education Tax is paid separately.

Contents of Education Tax Returns
• Computation of education tax
payable.
• Duly completed Self-Assessment
form attested by a Director or
Secretary of the company.
• Evidence of payment of the
education tax due.

H. Capital Gains Tax (CGT) Returns
The duty to file CGT returns arises when there is a capital gain from the disposal of a chargeable asset. CGT returns are filed along with the various tax returns for individuals and companies. Capital Gains Tax is paid separately at the rate of 10%.

Contents of CGT Returns
• Duly completed self-assessment
forms
• Computation of Capital Gains Tax
payable
• Schedule of Assets including proof
of sale
• Evidence of asset and asset
improvement
• Other relevant information

I. National Information Technology
Development Levy (NITDL)
FIRS is empowered to assess and collect the levy on the profit of companies and enterprises, with an annual turnover of ₦100 million and above operating in the business areas listed under the third schedule of the National Technology Development Agency Act of 2007.
The Levy is 1% of the profit before tax and, when paid by the Companies and Enterprises, is Tax deductible.

Companies and Enterprises Liable to NITD Levy
• GSM service providers and
telecommunication companies.
• Cyber companies and internet
providers.
• Pension managers and pension
related companies
• Banks and other financial
institutions
• Insurance companies
Contents of NITDL returns
• Computation of tax payable
• Evidence of payment of tax due

J. Companies Operating in the Capital
Market
In addition to the obligation of filing their annual tax returns, Companies operating in the Capital Market are required to file monthly tax returns containing details of their transactions for every preceding month.

Contents of the Returns
For Primary Market Operators, the contents include:
• Type of Offer
• Value of Services rendered or
received
• Amount of tax deducted at source
• Amount of Value Added Tax (VAT)
payable
• Evidence of tax paid (e-ticket)
For secondary Market Operators, the contents include:
• Number and value of transactions.
• Commission received or paid
• Amount of tax deducted at source
• Amount of VAT payable
• Evidence of tax paid (e-ticket)

Due Date for Filing the Return
For both Primary and Secondary Market Operators, the monthly tax returns are required to be filed not later than seven (7) days after the end of each month.

General Procedures for Filing Tax Returns with FIRS
1. Obtain the relevant form free from
any tax office of FIRS.

2. Complete the returns form carefully
and correctly.

3. Get the form signed correctly.

4. Carefully and correctly complete the
relevant form for paying the tax
(pay-in slip) at the approved
collecting bank.
5. Cross check your tax payment forms
to be sure they are correct.

6. Make payment with appropriate
payment instrument such as draft,
cash, internal transfer, e.t.c. through
the approved collecting banks

7. Collect e-ticket from the bank as
evidence of tax payment and verify
the details on it to ensure
completeness and correctness.

8 . Present to the FIRS tax office that
handles your tax matters the
following documents:
i. E-ticket issued by the bank as
evidence of payment;
ii. Duly completed return form;
iii. All required documents (as the case
may be)

9. Collect tax receipt from the tax office
and confirm it is issued correctly.

10. Reconcile tax accounts with the tax
office (if necessary) to ensure that no
tax is outstanding.