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Covid-19: Kaduna introduces more tax incentives

The new incentives include extension of deadline for filing tax returns, waiver of penalties and interest for late filing of returns, and tax rebate

Taxpayers in Kaduna State are to enjoy further Covid-19 tax incentives. This is in addition to the palliative measures announced on 9 April 2020 by the Kaduna State Internal Revenue Service (KADIRS) to cushion the effects of Covid-19 on taxpayers.

The new incentives include extension of deadline for filing tax returns, waiver of penalties and interest for late filing of returns, and tax rebate.

Also included in the incentives are grace periods for payment of consumption tax by the entertainment and hospitality sector, PAYE by private schools and for persons subject to presumptive tax.

The Kaduna State Government is granting the incentives in accordance with Sections 95 (1) and 127 of the Kaduna State Tax (Codification and Consolidation) Law, 2016.

The decision has been endorsed by the Kaduna State House of Assembly which on 14 July 2020 passed a resolution approving the request of the governor for the tax amnesty and additional palliatives.

Accordingly, KADIRS has announced the following tax incentives:

1) The deadline for the filling of Annual Tax Returns has been further extended to 30th September 2020.

2) Penalties and Interests that hitherto would accrue for late filling of returns have been waived for the period of the extension (1st April to July 31st, 2020).

3) Filling of Annual Tax Returns within the extended period shall be deemed to be within the statutory timeline and shall attract 1% rebate on tax due.

4) Kaduna State Internal Revenue Service has opened a window within the period of extension for amicable/out of court settlement, of all pending cases in Courts/Tribunals.

5) Taxpayers subject to Presumptive Tax shall enjoy a four-month grace period to recover from the shock of the lock down (1st June to 30th September 2020).

6) The Entertainment and Hospitality Sector shall enjoy a grace period on payment of Consumption Tax for the period of 1st April to 30th September 2020.

7) Private schools shall enjoy a grace period on payment of PAYE for the period of 1st April to 30th September 2020.

Defaulting taxpayers that have hitherto failed to subject themselves to tax, either by failing to declare, under- declare, failed to file returns or failed to pay their taxes shall be granted amnesty from prosecution and may be allowed a waiver on accrued penalties and interests, if they voluntarily declare their Assets/Incomes and pay between 30th June to 31st December, 2020.

9) Tricycle, Bus and Taxi operators from the transport sector shall enjoy a grace period on payment of daily revenue for the period of 1st April to 30th September 2020.

10) In line with social distancing measures taxpayers can utilize our on-line tax audit/investigation and reconciliation meetings. Taxpayers are also enjoined to take advantage of our various e-tax platforms to file tax returns, process their vehicle particulars, as well as purchase number plates (www.kadirs.kdsg.gov.ng).

The Kaduna State Internal Revenue Service implores its esteemed customers to stay safe, observe social distancing and follow other Covid-19 Safety Guidelines issued by the State Government and Health Authorities.

Signed

Zaid Abubakar
Executive Chairman, KADIRS
24th July 2020

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