DEADLINE FOR ANNUAL RETURNS EXTENDED TILL 31st OF AUGUST 2023
Filing of tax returns for various taxes with the Tax Authority is a legal obligation which must be fulfilled by every taxpayer. A taxpayer has a duty to file tax returns as required under a specified tax Law. The law specifies the type of returns, the nature of information required as well as the frequency and manners in which the returns should be filed. On the other hand, the Tax Authority has the duty to facilitate the process of filing tax returns by providing a taxpayer with standardized forms, guidelines and procedures.
This guide is therefore intended to provide information on the tax returns which are required to be filed with the Federal Inland Revenue Service (FIRS) by various taxpayers under the Federal Tax Jurisdiction.
Filing is the submission of tax returns by a taxpayer to the relevant Tax Authority in a manner prescribed by law and in accordance with the laid down administrative procedure.
What is a Tax Returns?
A tax returns is a report prepared by a taxpayer containing information on his tax affairs for a given
period for the purpose of complying with the tax laws.
Among many other taxes that requires annual returns by Tax Payers to the Federal Inland Revenue Services is Company Income Tax. Every company is required to file this returns even if exempted by the law from paying tax.
For new companies, such returns should be filed within eighteen (18) months of incorporation or six
(6) Months after accounting year end which ever come first. For old and existing companies, the returns should be filed within six (6) months after the accounting year end.
Contents of a Company’s Income Tax Returns
With the phased transition to the adoption of International Financial Reporting Standards, as from
January 2013; the contents of the returns to be filed include:
- Duly completed Self-Assessment form.
- Audited Financial Statement comprising:
- Statement of financial position (Balance Sheet)
- Statement of comprehensive income (Profit and Loss Account)
- Statement of changes in equity.
- Statement of cash flows.
- Notes on significant Accounting Policies and other explanatory information.
- Comparative figures of preceding year on the Generally Accepted Accounting.
For Companies whose financial year ended 31st of December 2022, the annual returns deadline was 30th of June, 2023 and companies that were unable to file their returns within the period will attracts late returns penalty of N25,000 for the first month and additional N5,000 each for every other month which the filing is pending. However, the Federal Inland Reve
nue Service has extended the time to submit Companies Income Tax (CIT) returns for 2023 year of assessment (YOA) which falls on 30th June 2023 as a result of their inability to meet up with the deadline to 31st of August, 2023.
Consequently, as a measure of goodwill and in line with relevant provisions of the companies Income Tax Act, the service directs as follows;
- All companies whose CIT return
- s for 2023 YOA fall due between 30th June and 31st August,2023 are given up to 31st August 2023, to submit the returns to the service
- The extension of the due date is a one-off gesture for only 2023 YOA CIT returns which are due to aforesaid;
- The relevant CIT returns shall therefore not attract Late Filing penalty or interest for late payment if submitted to the service on or before 31st August 2023;
- Where relevant CIT returns are not filed by the extended date, penalty and interest for late payment shall be computed from the original due date and not the extended date;
- This extension of filing date is only for CIT and does not include returns for withholding tax, value added tax, personal income tax (PAYE), etc.
At SOW Professional Services Ltd, we can assist you with this opportunity afforded by this extension to help you submit CIT returns within the specified time, pay the taxes due to avoid payment of penalty and interest. You can reach us via;
DEADLINE FOR ANNUAL RETURNS EXTENDED