TheCable

The Federal Inland Revenue Service (FIRS) has asked all international shipping companies operating in Nigeria’s territorial waters to immediately regularise their tax positions.

In a public notice released on Monday and signed by Muhammad Nami, its executive chairman, the revenue agency said all affected international shipping lines must conclude the regularisation of their outstanding tax returns not later than December 31, 2023.

FIRS said the order is the sequel to two previous circulars of June and December 2021 on the tax compliance status of international shipping lines.

“The circular provides the basis of taxation for all international shipping lines in Nigeria and the public notice requested all international shipping lines to regularise their tax affairs with the Federal Inland Revenue Service (FIRS) within three months of the date of that publication,” the notice reads.

“The Service observed that many international shipping lines have not complied with the tax obligations imposed by extant tax laws.

“Consequently, the Service hereby requests all international shipping companies operating in Nigerian territorial waters in whatever capacity (containerized, bulk cargo, fishing trawlers, crude oil and natural gas lifting vessels, dredging, survey, floating, production, storage, and offloading, etc.) to immediately regularise their tax positions.

“All affected international shipping lines must conclude the regularization of their outstanding tax returns at the Non-Resident Persons Tax Office (17B Awolowo Road, Ikoyi, Lagos) not later than 31st December, 2023.”

The FIRS said it is collaborating with relevant security agencies to commence enforcement action on all defaulting shipping companies after the expiration of the grace period of December 31, 2023.