Regularize outstanding tax returns or face sanctions, FIRS tells international shipping lines in Nigeria

All shipping companies operating on Nigeria’s territorial waters have been directed by the Federal Inland Revenue Service (FIRS) to regularize their outstanding tax returns by December 31, 2023, or face sanctions.

FIRS observed that many international shipping lines operating in the country had not been complying with the nation’s extant tax laws.

The agency gave the directive in a statement by its Executive Chairman, Mr Muhammad Nami.

FIRS said the order is sequel to two previous seculars of June and December 2021, where it provided the basis of taxation of international shipping lines and also called on them to regularize their tax issues within three months.

“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.

“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,” it said.

On the expiration of the deadline, FIRS said it would collaborate with relevant security agencies to prosecute defaulting shipping agencies after December 2023.

“The Service is collaborating with relevant government regulatory and security agencies in the maritime sector to commence enforcement action on defaulting shipping companies, after the expiration of the grace period of December 31, 2023.”