FIRS introduces new tax regime
The Federal Inland Revenue Service (FIRS) has introduced a new tax regime for multinationals and enterprises operating in the country.
Mr, Kabir Mashi, The Acting Executive Chairman, FIRS, gave the indication on Monday, adding that the development involved an exposure to various guidelines needed to file transfer pricing returns in line with the requisite regulations.
The acting Chairman said the new regime would guide against tax evasion.
According to him, transfer pricing generally has to do with setting appropriate prices for goods, services, assets, intellectual properties and loan guarantees supplied or transferred from one enterprise to another.
He said that long before Nigeria adopted it, some African countries had used the rules of transfer pricing to address problems associated with profit shifting.
As a result of this, the FIRS boss urged stakeholders to cooperate with relevant authorities to make the new regime effective, “if indeed, we want to make our transfer pricing a model in Africa”.
He stressed that the exercise would ensure multinational were taxed on a basis corresponding to their economic activities in the country, lessen the risk of double taxation, and provide a level playing field for the multinationals and independent enterprise
“These are the objectives and we need to translate them into a story. If we all play by the rules, the regime of transfer pricing in Nigeria could reposition the country to a path of sustainable economic growth and rapid development.
“At FIRS, our yearning is to implement the transfer pricing regime transparently, efficiently and effectively in order to promote voluntary compliance as enshrined in our mission statement”