FIRS withdraws suspension of CbC reporting obligations for non-parent entities

On 4 January 2022, the Federal Inland Revenue Service (FIRS) issued a new Public Notice to announce the withdrawal of its Public Notice of 6 May 2021 which suspended local filing obligations contained in Regulation 4 of the Income Tax (CbC Reporting) Regulations, 2018 imposed on branches and subsidiaries of Multinational Enterprises (MNEs) operating in Nigeria. According to the FIRS, the withdrawal of the suspension follows a review of Nigeria’s compliance with the confidentiality and data safeguard requirements to qualify as a reciprocal jurisdiction for CbC reporting purposes. Thus, local branches and subsidiaries of MNEs are now liable to file CbC Reports as applicable under Regulation 4 in Nigeria effective from 1 January 2022.