Business - Business & Economy - News - July 2, 2021

FIRS extends deadline for filing income tax returns for 2020

MEDIATRACNET
The Federal Inland Revenue Service (FIRS) has granted a one-month  deadline extension for companies to file their income tax returns for the year ended December 31, 2020.
The spokesperson of FIRS,  Abdullahi Ismaila Ahmad, who anounced this in Abuja on Friday, said the filing deadline extension was contained in a Public Notice of June 30, 2021 signed by FIRS Chairman, Muhammad Nami. 
The extension, which is going to be a one-off arrangement, MEDIATRACNET learned, would help taxpayers adjust to the new online TaxProMax Platform for filing tax returns recently introduced by the Service.
Under the subsisting tax filing schedule, taxpayers’ deadline for December 31, 2020 accounting year-end for statutory tax returns was not later than June 30, 2021.
But, Ahmad said: “This extension is to provide an opportunity to all taxpayers whose company Income Tax (CIT) returns were due in June 2021, to enable them file up to the July 31,2021.
“This extension suspends corresponding Late Returns Penalty (LRP) and interest for late filing for the period of the extension, provided that the filing process is concluded on the FIRS TaxProMax Platform and the tax due is paid using the Payment Reference Number (PRN) on or before July 31, 2021.
“The extension also provides an opportunity to taxpayers to upload all unused withholding tax (WHT) credit notes into the TaxProMax not later than July 31,2021,”Ahmad said.
The FIRS said the 30-day extension was granted following technical glitches experienced on its recently deployed TaxProMax Platform Solution by some taxpayers while trying to complete their annual filing processes. 
Nami said “the Service had taken note of the very good progress recorded in the implementation of the TaxProMax Solution introduced for ease of tax compliance in fulfilling taxpayers obligations.
He expressed gratitude to the taxpayers and the general public for the encouraging acceptance of the Solution and the feedback.
Pointing out that a Situation Room for resolving issues on a “real-time” basis for improved taxpayer experience of the Solution has been established, Nami said taxpayers and other stakeholders can make necessary enquiries about its operations through a dedicated email address: taxpromax.firs.gov.ng. Nami also said in response to the challenges experienced by taxpayers, “the TaxProMax has been upgraded to meet taxpayers’ requirements.
On Payment on Accounts, the FIRS Chairman said the upgrade would enable taxpayers to make payment on account, i.e. pay tax on account pending an assessment.
The system, he said, would apply such advance tax payment to a future assessment.
Besides, he said Validity of Payment Reference Number (PRN) formerly Document Identification Number (DIN) would remain valid until the due date of filing of the relevant tax returns.
Again, companies can effect value added tax (VAT) and WHT payments using the “Branch TIN”, whose use is only for VAT & WHT.
In addition, the FIRS said “the main CIT returns must be filed using the company TIN for the Tax Office hosting the main tax file.”
Nami urged taxpayers and the general public to continue cooperating with the FIRS in generating revenue for the development of the country.

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