Reminder to File Country-By-Country Reporting Notification


Wednesday, December 11, 2019 / 7:09 PM / Deloitte / Header Image Credit: The Guardian Nigeria


The Federal Inland Revenue Service (FIRS) issued the Income Tax (Country-by-Country Reporting) Regulations (the CbCR Regulations) in 2018. The CbCR Regulations include reporting and notification obligations for companies that are members of multinational entities (MNEs) with a group consolidated revenue of at least N160,000,000,000 in the preceding accounting year.


Members of MNE Group, that are resident for tax purposes in Nigeria, are required to file Country-by-Country (CbC) report where one or more of the following conditions apply:

1.   The ultimate parent entity (UPE) of the MNE Group is not obligated to file a CbC report in its jurisdiction of tax residence,

2.     The jurisdiction in which the UPE is resident for tax purposes has a current International Agreement to which Nigeria is a party but does not have a Qualifying Competent Authority Agreement in effect to which Nigeria is a party 12 months after the last day of the accounting year of the MNE Group, or

3.  There has been a systemic failure of the jurisdiction of tax residence of the UPE which has been notified by FIRS to the constituent entity resident for tax purposes in Nigeria.


In view of the above, affected Nigerian companies, with a group year-end of 31 December, have obligations to submit annual CbCR notification on or before 31 December. The penalty for failure to file the notification N5,000,000 for the first month of default and ₦10,000 for every day the default continues.


Companies, that meet the group revenue threshold, are hereby advised to file their CbCR notifications before the 31 December 2019 deadline to avoid stringent penalties that may be imposed by FIRS.

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