FIRS Grants Extension for Filing of Company Income Tax (CIT)

The Federal Inland Revenue Service (FIRS) has issued a public notice to partly extend the due date for submission of companies’ income tax returns for the 2023 year of assessment (YOA). According to the FIRS, numerous requests were received from concerned taxpayers seeking an extension of the deadline to submit their Companies' Income Tax (CIT) returns for the 2023 YOA.

These companies have expressed their inability to meet the statutory deadline of 30th June 2023 for filing 31st December 2022 financials. As a result, the FIRS has extended the due date as a gesture of goodwill and in accordance with the relevant provisions of the Companies Income Tax Act.

The FIRS has provided the following clarifications in respect of the extension:

1. All companies with CIT returns for the 2023 YOA falling due between 30th June and 31st August 2023 (both days inclusive) are granted an extension until 31st August 2023 to submit their returns.
2. This extension is a one-off gesture and only applies to the 2023 YOA CIT returns that are due during the aforementioned period.
3. The relevant CIT returns, if submitted to the Service on or before 31st August 2023, will not incur late returns penalty and other associated interest & penalty.
4. In cases where the relevant CIT returns are not filed by the extended date, penalties and interest for late payment will be calculated from 30th June, which is the initial due date, not the extended date.
5. It is important to note that this extension for filing is solely for CIT returns and does not include returns relating to Withholding Tax (WHT), Value Added Tax (VAT), Pay As You Earn (PAYE), etc.

The FIRS invites all relevant taxpayers to take advantage of this extension and submit their CIT returns within the specified time. By doing so, they can fulfil their tax obligations, avoid penalties and interest charges, and ensure timely payment of their taxes.    

Our Thoughts

The FIRS should be commended for their thoughtful and considerate gestures regarding the extension for filing outstanding 2023 YOA CIT returns. By this extension, the FIRS has demonstrated its responsiveness to the challenges faced by companies in meeting the deadline.

Given this kind gesture of the FIRS, we are seizing this opportunity to implore all affected taxpayers to take advantage of this extension and submit their outstanding CIT returns within the specified timeline. This will enable them to avoid late returns penalties and other associated interest & penalties, considering the impact this could have on their financial flow.