Jennete Ugo Anya
The Federal Inland Revenue Service (FIRS) is advising international shipping firms that operate within Nigerian territorial waters to promptly rectify their tax statuses.
A notice, endorsed by Mr. Muhammad Nami, the Executive Chairman of FIRS, and made public on the agency’s verified platform, underscores the lack of compliance among several international shipping lines with tax regulations.
These companies are mandated to finalize their outstanding tax returns before December 31, 2023. The notice extends the instructions outlined in circulars from 2021 regarding the taxation of international shipping and adherence to tax requirements.
FIRS highlights that the circular defines the taxation framework for international shipping lines in Nigeria and urges them to address their tax affairs with the agency within three months of the notice’s issuance.
Furthermore, it requires all international shipping enterprises that operate within Nigerian territorial waters to regularise their tax positions by December 31, 2023, at the Non-Resident Persons Tax Office.
FIRS is collaborating with security agencies to commence enforcement actions against non-compliant shipping companies once the grace period concludes.
