FIRS Sets Dec 31 Deadline for Foreign Shipping Companies to Comply with Tax Laws
By Patience Ikpeme
The Federal Inland Revenue Service (FIRS) has issued a stern warning to foreign shipping companies lifting crude oil from Nigeria, demanding strict adherence to the country’s tax regulations by December 31.
FIRS Chairman, Zacch Adedeji, emphasized the importance of non-domestic companies complying with Nigerian tax laws throughout their operations, noting that the ongoing tax compliance exercise is part of efforts to broaden the tax net and boost government revenue.
Adedeji, addressing a workshop on taxation of non-resident shipping companies organized by FIRS in conjunction with the Oil Producers Trade Section (OPTS), assured international companies that the agency is committed to ensuring compliance rather than disrupting operations.
“The Federal Government is determined to increase Nigeria’s tax-to-GDP ratio to 18% within the next three years,” Adedeji stated. “We aim to achieve this without imposing additional taxes but by widening the tax net. The tax compliance exercise on international shipping companies lifting crude oil from Nigeria aligns with this strategy.”
Adedeji urged non-compliant companies to immediately rectify their tax affairs, acknowledging concerns raised by stakeholders in the oil and gas industry and the maritime sector.
“The Service has granted a six-month grace period for non-resident shipping companies to regularize their tax affairs and contribute their fair share to the country’s revenue,” Adedeji explained. “This grace period will expire at the end of this year.”
Emphasizing collaboration with stakeholders, Adedeji assured that FIRS is committed to transparent and fair resolutions of assessment notices served on any taxpayer.
“We are prepared to enforce Nigerian tax laws without violating the rights of any taxpayer,” Adedeji concluded.
