FIRS Taxpromax Solution: Filing Requirements and Procedures

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Introduction

Following the provisions of the Finance Act 2020 which empowers the Federal Inland Revenue Service (FIRS) to automate tax return filing and payment processes, the FIRS has introduced the TaxProMax application. The application is a one-stop, online tax administration platform for the management of tax processes. It offers taxpayers the opportunity to:

  • Register, file returns, remit taxes
  • Carry out assessments and keep track of tax obligations
  • Manage withholding tax deductions
  • Manage capital allowance and loss,
  • Download tax clearance certificate
  • Communicate with the FIRS on tax issues, among other things.

The application portal was opened on 7th of June 2021 for filing of all naira denominated taxes.  In a recent circular dated June 4, 2021, the Federal Inland Revenue Service called on the tax paying public to fulfil their tax obligations using this portal. Of particular reference are companies that have 31st December accounting dates whose returns fall due on 30th June 2021. Due to the glitches experienced with registration and usage of the portal by taxpayers, the deadline for filing of returns was extended to 31st July 2021 instead of the statutory 30th of June 2021 without the obligation to pay penalty and interest for late filing.

Taxpayers can access the portal by registering after which they must input their log-in details in order to file returns. Upon filing the returns, a Document Identity Number (DIN) will be generated. The DIN is mandatory in order to remit taxes via the portal. The portal can be used to file returns by taxpayers or their approved agents. Tax payers who want to file returns in hard copy may visit the local tax offices where staff of the FIRS will be on hand to upload the documents to the portal. However, this should be done at least 2 weeks before the deadline.

Filing Requirements for Value Added Tax

To file your returns on TaxProMax, the following procedure should be followed:

  • Tax payers are required to visit the local tax office of the FIRS to fill the tax update form
  • Access the TaxPro Max portal via https://taxpromax.firs.gov.ng and login with your user details, after which a dashboard will be displayed
  • Click on taxes due and select the tax type
  • Click on “Process” to get started
  • Fill in the schedules as required including sales adjustment, exempt and zero-rated goods and service.
  • Click on “Add Record” and then “Proceed”
  • The VAT form will load after a user has completed all schedules
  • Under “Returning Currency”, select the currency type.
  • Insert the Total Sales/Income Exclusive of VAT
  • Tick the box for the declaration form
  • Confirm all entries before submission

Filing Requirements for Companies Income Tax

  • Log in to https://taxpromax.firs.gov.ng on your browser
  • Click “Taxes Due”
  • Under the Action column, click on “Process” and it will take you to Schedules
  • The Company Income Tax (CIT) form will be generated and displayed after the completion of all the schedules.
  • Select the currency type (i.e. NGN, GBP, USD, CFA, EUR), under “Returning Currency”
  • Insert the total revenue amount on the first box of the generated form. This will automatically fill the remaining pre-fill boxes.
  • Beneath the generated CIT form, click on “Declaration” to declare that the information is correct and in accordance with the relevant Tax Act.
  • Select payment options; Full-Payment, 2 instalments, 3 instalments, or 4 instalments, accordingly.
  • Click on “Submit”
  • On the Company Income Tax Assessment Page, click on Review the CIT assessment
  • Click “Proceed to Payment”
  • On the CIT Assessment page, upload Audited Account, Tax Computation, Notes to Account, Memorandum and Articles of Association
  • Click on “Submit”
  • All documents to be uploaded in PDF format except Notes to the Account which is in excel format. The size of the files should not be more than 200kb
  • Payment Session: On the CIT Payment page, go through the Description items and their corresponding amounts for payment
  • Click “Process to Payment”
  • On the Payment page, click on “Pay Now”
  • Click ‘Pay’ button.
  • The system will automatically generate a Payment Reference code (RR).
  • Two payment options will be available, i.e. ‘Pay online’ or ‘Pay at Bank’
  • Pay online will automatically connect to Remita platform by generating the payer’s name, phone number, email, amount, reference code. You can pay the amount online or at any FIRS designated Bank and click submit.
  • Confirm payment and print payment acknowledgment slip.

Conclusion

The launch of the TaxPro Max by the FIRS is a welcome and laudable development. The portal will enable seamless filing of tax returns and remittance of tax. Taxpayers are enjoined to make use of the portal and report any glitch to the FIRS in order to assist the Service to make usage of the platform hitch-free. The FIRS should also ensure timely resolution of technical glitches encountered by taxpayers.

Tax Practitioners should endeavour to assist their clients to properly file their Tax Returns before the close of the extended deadline. In doing this, it is compulsory for tax practitioners to file returns only with their personalized stamps and seals. Practitioners who are yet to obtain their seals and stamps should reach out to the Institute on info@citn.org and membership@citn.org.

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