Regularization of Tax Status of Dormant Companies – FIRS

The Federal Inland Revenue Service (FIRS) has issued a notice to dormant companies to regularize their tax status on or before 30th June 2020.

In the notice, FIRS confirmed that it is currently working with other relevant agencies of government such as the Nigerian Financial Intelligence Unit (NFIU), Corporate Affairs Commission (CAC), Money Deposit Banks (MDBs) etc. to ensure that taxpayers file and pay tax appropriately as when due.

FIRS stated that it will apply its statutory powers of enforcement on any dormant company who fails to regularize its account after the deadline.

A dormant company, according to FIRS, is that company who has formally informed the Service of its intention to be out of business temporarily for at least a period of one financial year due to unfavorable economic conditions.

The Statement of Affairs of a dormant company will be accepted for regularization purpose.