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FIRS Issues Circular On Requirements And Procedures For Accessing Tax Treaty Benefits

Posted on Sat 7 Dec 2019

Tax Benefits

On Wednesday, December 4, 2019, the Federal Inland Revenue Service (“FIRS”), pursuant to its powers under Section 8(1)(t) of the FIRS (Establishment) Act 2007 and other relevant enabling laws, issued an Information Circular on the Claim of Tax Treaties Benefits in Nigeria (the “Circular”).

The Circular seeks to ensure an effective and accurate implementation of the various Double Taxation Agreements (DTAs) between Nigeria and other countries. The Circular is also intended to enlighten taxpayers and the general public on the DTAs in force in Nigeria as well as the tax benefits contained therein.

Effective January 1, 2020, all resident and non-resident taxpayers seeking to claim tax treaty benefits in respect of any year of assessment in Nigeria, must comply with the procedures set out in the Circular.

In a public notice issued by the FIRS announcing the Circular, the FIRS enjoined all government institutions and private companies to implement Treaty Withholding Tax rates stated in the relevant tax treaties in strict compliance with the provisions of the Circular.

A detailed commentary on the provisions of the Circular and its effect on taxable individuals and entities in Nigeria will be issued soon. In the meantime, we urge all resident and non-resident taxpayers and their representatives to take note of the effective date of the Circular.

For more information, please contact our Tax or your regular Banwo & Ighodalo contact.