Friday, 26 May 2017

Nigerian Tax Authority releases updated transfer pricing forms for 2017

Nigeria’s Federal Inland Revenue Service (the FIRS) recently released updated transfer pricing (TP) forms (TP Declaration and Disclosure forms). All related taxable persons (taxpayers) in Nigeria are required to submit their TP returns using these updated TP forms effective from 1 January 2017.

The updated TP forms require more disclosures from taxpayers and clarify certain issues encountered in completing the old forms.

Some of the key updates include disclosures on foreign tax identification numbers of taxpayers, the definition of low tax jurisdiction, values of income received and costs incurred in relation to related and independent sources, names and jurisdictions of contracting parties to related party transactions.

It is expected that the updates will assist the TP division of the FIRS to obtain adequate and appropriate information required to perform effective risk assessments on taxpayers and their related party transactions.

The FIRS has also stated in the form that a taxpayer may submit the completed form with all attachments (audited financial statements, tax computations and self-assessment forms) at the tax office where the taxpayer’s file is maintained or directly to the TP Division, 3rd Floor, 17B Awolowo Road, Ikoyi, Lagos.

Failure to submit this form by the due date for filing the annual tax return attracts the penalty for late income tax returns as prescribed in the relevant tax laws.

The updated forms are available for download from the FIRS website.

Source: EY