Federal Inland Revenue Service (FIRS) has directed international shipping companies operating within Nigeria’s territorial waters to promptly address their tax obligations.
Gatekeepers News reports that in a notice issued on Monday and endorsed by Muhammad Nami, the agency’s executive chairman, FIRS emphasized that all pertinent international shipping firms must resolve their overdue tax returns by December 31, 2023.
This directive from FIRS follows two prior circulars, issued in June and December 2021, pertaining to the tax compliance status of international shipping lines.
“The circular provides the basis of taxation for all international shipping lines in Nigeria and the public notice requested all international shipping lines to regularise their tax affairs with the Federal Inland Revenue Service (FIRS) within three months of the date of that publication,” the notice reads.
“The Service observed that many international shipping lines have not complied with the tax obligations imposed by extant tax laws.
“Consequently, the Service hereby requests all international shipping companies operating in Nigerian territorial waters in whatever capacity (containerized, bulk cargo, fishing trawlers, crude oil and natural gas lifting vessels, dredging, survey, floating, production, storage, and offloading, etc.) to immediately regularise their tax positions.
“All affected international shipping lines must conclude the regularization of their outstanding tax returns at the Non-Resident Persons Tax Office (17B Awolowo Road, Ikoyi, Lagos) not later than 31st December, 2023.”
The FIRS has stated that it is partnering with appropriate security agencies to initiate enforcement measures against non-compliant shipping companies once the grace period concludes on December 31, 2023.
