Kaduna rolls out tax incentives to cushion effects of COVID-19

The Kaduna State Internal Revenue Service (KADIRS) has introduced tax incentives to cushion the effects of COVID-19 on taxpayers.

The COVID-19 pandemic has affected economies around the world, Nigeria inclusive.

In a statement on Friday, Zaid Abubakar, KADIRS executive secretary, said taxpayers subject to presumptive tax would enjoy a four-month grace period –June 1 to September 30, 2020 — to enable them recover from the effects of the lockdown.

“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,” he said.

“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 deadline for the filing of annual tax returns has been further extended to 30th September, 2020. Penalties and interests that hitherto would accrue for late filing of returns have been waived for the period of the extension (1st April to July 31st, 2020).

‘’Filing 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.”

The executive secretary said the entertainment and hospitality sector would enjoy a grace period on payment of consumption tax between April 1 and September 30, 2020.

For private schools, they “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,” he said.

“Tricycle, bus and taxi operators shall enjoy a grace period on payment of daily revenue for the period of 1st April to 30th September, 2020.”

Abubakar urged taxpayers to take advantage of online tax audit/investigation and reconciliation meetings in line with social distancing measures.

“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,” he added.