The Federal Inland Revenue Service (FIRS) recently issued a public notice on January 4, 2022. This public notice was released to withdraw the suspension of local filing of the Country-by-Country (CbC) Reports by branches and subsidiaries of Multinational Enterprises (MNEs) groups that do not have their headquarters in Nigeria nor are signatories to the Multilateral Competent Authority Agreement (MCAA) on the exchange of CbC Reports.
According to the public notice, this withdrawal is consequent upon the review of Nigeria under the confidentiality and data safeguard, as well as the subsequent submission of Nigeria’s notification for reciprocal exchange of the CbC Reports.
Recall that on May 6, 2021, the FIRS issued a public notice to suspend branches and subsidiaries of MNEs operating in Nigeria to submit their CbC Reports to the FIRS, where no Automatic Exchange of Information exists between Nigeria and the Ultimate Parent Entity (UPE)’s country of residence.
Highlights of the Public Notice
With the announced withdrawal of the suspension, affected MNEs are now obligated to submit their CbC Reports to the FIRS with effect from 1st January 2022.
Nigerian constituent entities are still required to file their annual CbCR Notification which provides information on the identity and tax residence of the entity preparing the CbC Reports on behalf of the MNE group before the end of its financial reporting year.
Nigerian branches and subsidiaries of MNEs are advised to check with their UPE whether an Automatic Exchange of Information exists with their jurisdiction. The outcome of this would determine if a CbC Report would be submitted in Nigeria or not.
Should you require assistance with fulfilling this obligation, do not hesitate to contact us at Mazars Nigeria.
Partner, Tax and Regulatory Services, Mazars
Director, Tax and Regulatory Services, Mazars
Manager, Tax and Regulatory Services, Mazars