FIRS Public Notice On Filing Of Tax Returns By Non-governmental Organisations

FIRS Public Notice On Filing Of Tax Returns By Non-governmental Organisations

The Federal Inland Revenue Service (FIRS) recently issued a public notice on the filing of Tax Returns by Non-governmental organizations (NGOs). The notice was signed by the Executive Chairman, FIRS Muhammad Nami in efforts to improve the ease of doing business in Nigeria and with the objective to help the taxpaying public minimize their cost of compliance in filing tax returns.

A non-governmental organization is an association of persons registered under Section 590 of the Companies and Allied Matters Act (CAMA) 1990 for the advancement of any religious, educational, literary, scientific, social development, cultural, sporting and charitable purpose. They are non-profit making organizations.

NGOs include organizations, institutions, and companies engaged in ecclesiastical, charitable, benevolent or educational activities of a public character. Many countries including Nigeria have recognized the significant role being played by these organizations in building a strong, caring and well-functioning society as well as in contributing to its welfare and economic growth. In recognition of this, the Government grants tax incentives to such organizations in form of exemption of their profits (other than those derived from trade or business carried out by them) from income tax and zero rates of Value Added Tax (VAT) for their humanitarian services (other than services consumed by them).

The affected taxpayer (i.e. NGOs) is hereby notified that henceforth to file their annual returns in Medium Tax Offices (MTOs) in their states of location and the (MSTOs) in states where there are no MTOs. The Tax Offices for filing are stated as follows:

States with Medium Tax Offices (MTO)

1. FCT MTO Abuja
2. Delta State MTO Warri
3. Enugu State MTO Enugu
4. Kano State MTO Kano
5. Lagos State (Island) MTO Lagos Island 
6. Lagos State (Mainland East) MTO Lagos Mainland East
7. Lagos State (Mainland West) MTO Lagos Mainland West
8. Oyo State MTO Ibadan
9. Rivers State MTO Port Harcourt

States without Medium Tax Offices (MTO)
NGOs operating in states without an MTO are to file in the MSTO in their state of operation.

The affected taxpayers filing 2020 tax year returns and going forward are expected to comply with these new developments.

Concluding thought
This development is a welcomed initiative in the Nigerian tax system, as it promotes convenience and reduction in the NGOs' cost of tax compliance.

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