July 7, 2022
On 4 July 2022, the Federal Inland Revenue Service (FIRS or “the Service”) issued a Press Release informing the general public of its extension of the deadline for filing Companies Income Tax returns (CIT) returns. Based on the FIRS’s Notice, companies whose CIT returns fall due between 30 June 2022 and 31 August 2022 are given up to 31 August to submit their returns to the FIRS.
According to the Press Release, the extension was granted as a measure of goodwill by the FIRS following numerous requests from companies regarding their inability to meet the initial deadline of 30 June 2022. Specifically, the Press Release stated the following:
Contrary to the above waivers, penalty and interest for late payment shall be computed from the original due date rather than the extended date where CIT returns are not filed by the extended date. Also, the extension of the filing date only applies to CIT and does not include returns for Withholding Tax (WHT), Value Added Tax (VAT), Personal Income Tax (PAYE), etc., that fall due as at that period.
The extended timeline for submission of CIT returns is a welcome development as it provides an opportunity for taxpayers that were unable to meet the earlier deadline to now submit returns without the fear of incurring penalties and interest for default.
Taxpayers who are yet to file their returns are advised to engage their tax consultants to take advantage of the extended period to file their returns and pay the taxes due.