FIRS To Commence Tax Compliance Checks In Nigeria’s Export Processing Zones
Fred Omotara, Lagos
The Federal Inland Revenue Service (FIRS) has concluded plans with the Nigerian Export Processing Zones Authority (NEPZA) to commence tax Compliance checks on businesses operating in the nations export processing zones.
In a statement issued on Wednesday by the FIRS, the partnership with NEPZA is geared towards improving collaboration towards efficient tax administration at the nations Free Trade Zones.
According to the statement, “The FIRS, on Tuesday signed an MoU with NEPZA on improved collaboration towards tax administration at Free Trade Zones under the NEPZA.
“The ceremony was led by the Executive Chairman of the FIRS, Muhammad Nami, and the MD of NEPZA, Professor Adepoju Adesugba.
“With this agreement, the Federal Inland Revenue Service is expected to start receiving returns from enterprises that are in operations in the Nigerian Export Processing Zones. FIRS would also have access to the zones to conduct compliance checks.
“It is important to note that enterprises in the Export Processing Zones enjoy complete exemption from tax. However, they are statutorily expected to file returns. These returns help the government to plan and know which taxes it has foregone as incentives.
“It is also expected that the companies in the zone act as collection agents of VAT for the FIRS when they do business with companies that are not in the zone.
“This MoU would also help the FIRS to bridge collaboration gaps between the Service and NEPZA.”