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  • Business - Economy
  • Updated: Jul 31, 2020

Again, FIRS Extends Tax Return For Companies

Again, FIRS Extends Tax Return For Companies

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Olalekan Fakoyejo

Fakoyejo Olalekan is a certified media practitione...

Companies yet to submit their tax returns have been given another one week grace by the Federal Inland Revenue Service (FIRS). This will prevent the companies from sanction for late filing of tax return as deadline was initially scheduled for July ending this year.

The companies now have until August to file their tax returns. According to the chairman of the FIRS, Muhammad Nami, the extension was given as palliative, which will further ease the return of companies reopening after a long lockdown and help their preparation.

Nami said the decision was also influenced by the Eid celebration. The deadline for the filing of tax return now fall between August 1, 2020, to August 7, 2020.The extension is, however, not for all companies, as the palliative is only for companies with December accounting year-end and monthly obligator.

“In addition to other COVID-19 tax palliatives and in the spirit of Eid celebration, we have given a further one-week extension from July 31, 2020 deadline for companies with December accounting year-end, to file year 2020 income tax returns” the tax administrator boss said.

“For the purpose of clarity, companies that fall within December accounting year-end category will not be penalised for late submission, if they file their year 2020 income tax returns within the grace period, that is, August 1, 2020, to August 7, 2020, as herein granted.

“The one week grace period is also extended to regular monthly obligations that become due at the end of July 2020.” This is the tax agency's method of assisting taxpayers through the COVID-19 pandemic which has disrupted the regular business activities across the world, including Nigeria, where confirmed cases have continued to rise.

FIRS Extend Deadline For Tax Debt 

AllNews had previously reported three weeks ago that FIRS extended tax debt for companies and individuals. The latest extension applies to tax audit, tax investigation and desk review assessments, approved installment payment plans under Voluntary Assets, and Income Declaration Scheme (VAIDS).

According to Nami, the aforementioned taxes are "yet to be fully liquidated." The extension will prevent businesses and individuals from paying penalties and interests on the tax debt. The deadline for the payment of the tax debt has now been moved from June 30 to next month, August 31, 2020.

No More Extension By FIRS

While speaking on the extension three weeks ago, Nami said it will be the last extension on the tax debt, “Taxpayers are advised to note that there will be no further extension of this palliative measure. Tax debtors are therefore enjoined to liquidate their outstanding tax liabilities on or before August 31, 2020, in order to enjoy a waiver of accumulated penalties and interests,” he said in a statement.

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