The Federal Inland Revenue Service (FIRS) on Monday,
29 March 2021, issued a Public Notice to clarify the procedure for
self-assessed taxpayers to apply for instalment payment of their companies’ income tax (CIT), in line with Section 77 (5) of the CIT Act, Cap C21, LFN 2004
[as amended by the Finance Act, 2019 (â€œthe Actâ€)].
With three months to the filing deadline for companies
with the 31 December financial year-end, the FIRS has directed taxpayers who
intend to settle their CIT in instalments to apply to the Board in writing with
evidence of the first instalment of the CIT payable and full payment of the
Tertiary Education Tax (TET). The FIRS reiterated that the final
instalment of the CIT must be paid on or before the due date of filing to avoid
the enforcement of tax recovery provisions of CITA and the FIRS Establishment
Act on any outstanding amount due.