FIRS Urges Compliance: Foreign Shipping Companies Must Adhere to Nigeria’s Tax Laws.

The Federal Inland Revenue Service (FIRS) is calling on foreign companies engaged in shipping crude oil from Nigeria to ensure compliance with the country’s tax laws. Zacch Adedeji, Chairman of FIRS, issued this directive during a workshop on the taxation of non-resident shipping companies, organized in collaboration with the Oil Producers Trade Section (OPTS) in Lagos. Adedeji clarified that the tax compliance initiative, focused on foreign shipping companies involved in hydrocarbon transportation, aims to expand the tax net and boost revenue. He assured international companies that the agency’s intent is to enforce existing tax laws without disrupting their operations. According to Adedeji, Section 14 of the Companies Income Tax Act (CITA) 2004 mandates foreign companies engaged in shipping and air transport operations in Nigeria to file tax returns to continue operating in the country. He reminded companies of the six-month grace period provided for them to regularize their tax returns, ending on December 31 of the current year. The Chairman emphasized that the workshop’s purpose is to address challenges related to tax compliance by foreign companies and find lasting solutions. He highlighted the Federal Government’s target to increase Nigeria’s tax-to-GDP ratio to 18 percent within the next three years by broadening the tax net, without imposing additional taxes. Adedeji urged non-compliant international shipping companies to promptly adhere to Nigerian tax laws, emphasizing the importance of cooperation to achieve the government’s broader fiscal goals. Recognizing concerns from stakeholders in the oil and gas industry and the maritime sector, he affirmed the FIRS’s commitment to facilitating a smooth and effective tax compliance process for all parties involved. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.