Adherence to Tax Regulations by International Shipping Companies Operating in Nigeria

The Federal Inland Revenue Service (FIRS) issues a notice on the taxation of international shipping and air lines following the circular and public notice issued in 2021. The circular outlines the framework for taxing international shipping lines in Nigeria, while the public notice urges all international shipping lines to resolve their tax matters with the Federal Inland Revenue Service within three months from the date of that notice.
The Federal Inland Revenue Service has noticed that a significant number of international shipping lines have not adhered to the tax responsibilities set forth by existing tax regulations.
In light of this, the Federal Inland Revenue Service is now formally requesting all international shipping companies operating within Nigerian territorial waters, regardless of their operational nature (such as containerized, bulk cargo, fishing trawlers, crude oil or natural gas lifting vessels, dredging, survey, Floating Production Storage and Offloading, etc.), to promptly address their tax status.
It is mandatory for all affected international shipping lines to complete the process of resolving their outstanding tax filings at the Non-Resident Persons Tax Office located at 17B Awolowo Road, Ikoyi, Lagos, no later than December 31st, 2023.
The Federal Inland Revenue Service is working in conjunction with pertinent government regulatory and security bodies within the maritime sector. They intend to initiate enforcement measures against all non-compliant shipping companies once the grace period expires on December 31st, 2023.