Emma Ujah, Abuja Bureau Chief

The Federal Inland Revenue Service (FIRS) has offered taxpayers who have outstanding foreign currency tax liabilities a one-month window to settle such liabilities in Naira.

The Executive Chairman of FIRS, Mr. Muhammad Nami, said in a notice to the affected taxpayers that they have a window of March 1 to March 31, 2022, for such payment.

According to the chairman, the concession became necessary given concerns raised by some taxpayers about their challenges in sourcing foreign exchange to meet the liabilities.

He said, “In view of the number of requests, enquiries and the challenges encountered by the taxpaying public in sourcing for foreign currencies to offset outstanding tax liabilities, the Federal Inland Revenue Service (“the Service”) wishes to inform our esteemed taxpayers that a one-month window has now been opened for this category of taxpayers to settle their foreign currency tax liabilities in Naira with effect from the 1st of March, 2022 to 31st of March, 2022.

• READ ALSO: A first-time visitor to the Babalola University

The FIRS boss explained that the concession was a one-off window as the law provides that the currency in which a taxpayer transacts a business is the currency with which the tax is to be paid.

He said, “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 applicable rate shall be the Investors and Exporters (I&E) Foreign Exchange Rate of the Central Bank of Nigeria (CBN) prevailing on the date of the transaction and or when the tax obligation falls due.”

The window, according to him, covers all tax liabilities that became due for payment on or before 31st December, 2021, and for all taxes except the Petroleum Profit Tax.

“This concession is available to all taxpayers, covers all tax types, and all foreign currency tax liabilities falling due on or before 31st December 2021, except for companies in the Upstream (Oil & Gas) Sector, and the Petroleum Profits Tax,” the chairman said.