FIRS extends income tax returns deadline for companies by a week

The Federal Inland Revenue Service (FIRS) has extended the July 31, 2020 deadline for companies with December accounting year end to file year 2020 income tax returns in light of the Muslim celebration.

This means that companies that fall within the December accounting year end category will not be penalised for late submission. However, this new development is valid for companies if they file their year 2020 income tax returns within the grace period, August 1 to 7, 2020.

The agency also extended the one-week grace period to the regular monthly obligations that already due at the end of July 2020.

Considering that the pandemic has affected many businesses, the agency has been putting in efforts to help alleviate its impact. Previously, the FIRS moved the monthly remittance to VAT charges from the 21st of every month till the last day of the month. It also waived interests and penalties for taxpayers on outstanding tax debts if they pay their debts in full on or before May 31, 2020.

Read also: COVID-19 tax relief: African countries and their measures

On the other hand, the Federal Ministry of Finance, Budget, and National Planning, through the Central Bank of Nigeria (CBN) also introduced a ₦50 billion Targeted Credit Facility (TCF) as a stimulus package to help  families and micro, small and medium enterprises (MSMEs) affected by the coronavirus outbreak.

Another move of the Federal Inland Revenue Service during this period, was collaborating with the Corporate Affairs Commission (CAC) to issue Tax Identification Numbers (TIN) alongside the Certificate of Incorporation for companies and businesses.

With the considerable number of initiatives put in place for companies at this crucial time, we can’t but anticipate more from the government-owned agency.

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