The Federal Inland Revenue Service (FIRS) on Tuesday signed a Memorandum of Understanding with the Nigeria Export Processing Zone Authority (NEPZA) on improved collaboration towards tax administration at Free Trade Zones under the NEPZA.
The MoU signing ceremony was led by the Executive Chairman of the FIRS, Muhammad Nami, and the Managing Director of NEPZA, Professor Adepoju Adesugba at the Revenue House, Abuja.
With this agreement, the Federal Inland Revenue Service is expected to start receiving returns from enterprises that are in operations in the Nigerian Export Processing Zones. FIRS would also have access to the zones to conduct compliance checks.
It is important to note that enterprises in the Export Processing Zones enjoy complete exemption from tax. However, they are statutorily expected to file returns. These returns help the government to plan and know which taxes it has foregone as incentives.
It is also expected that the companies in the zone act as collection agents of VAT for the FIRS when they do business with companies that are not in the zone.
This MoU would also help the FIRS to bridge collaboration gaps between the Service and NEPZA.
