Prior the Finance Act 2021, before any taxpayer could make payments of companies’ income tax in instalments, the taxpayer was required to first write to the Federal Inland Revenue Service (FIRS) for approval to pay in desired number of instalments. Such letter was also expected to be accompanied by evidence of payment of the first instalment.
Under the Finance Act 2021, taxpayers can now pay CIT in instalments without prior approval by the FIRS as long as the final instalment is compulsorily paid on or before the due date of filing.
For further enquiries, discussion, advisory or help around complying with these new laws, please send us an email via clients@vi-m.com. You will be able to access all our explanatory write-ups on each of the major changes to the laws, brought about by the Finance Act 2021 and the practical ways in which they will affect taxpayers going forward, under our website group link – https://www.vi-m/category/Finance-Act-2021.