The Federal Inland Revenue Service FIRS has approved a one-month window to enable taxpayers with outstanding foreign currency tax liabilities to settle them in naira between March 1 to March 31, 2022, according to a public otice released by the service and signed by the Executive Chairman, Muhammad Nami.

The FIRS disclosed that it had received requests and enquiries from taxpayers on challenges being encountered in sourcing for foreign currencies to offset their outstanding tax liabilities.

The notice reads in part: “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.”

The Service explained that this concession was a one-off window as the law has stated that the currency a taxpayer transacts in is the currency with which the tax is to be paid.

“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 notice further stated.

It was gathered that this window covers all such liabilities that have falling 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.

Investigations further showed that to benefit from this, taxpayers within this category are expected to make all payment before 31st March, 2022 and upon payment, the relevant documents relating to the transaction together with the evidence of payment must be forwarded to the office of the Executive Chairman, and a copy submitted to the local tax office where the taxpayer’s file is domiciled.