FIRS insists NGOs must pay tax

Non-governmental organisations in the country are not exempted from paying taxes, the Federal Inland Revenue Service has declared.

According to the service, insinuations that NGOs, as not-for-profit organisations, are exempted from paying taxes are incorrect.

Speaking to members of different NGOs during a sensitisation meeting in Abuja on Thursday, the Acting Executive Chairman, FIRS, Mr. Kabiru Marshi, said “Nigerian tax laws do not necessarily exempt NGOs from paying taxes.

“As an emerging economy, Nigeria is moving away from resource dependence and focusing more on sustainable sources of revenue, especially taxation. We cannot, therefore, afford to leave behind any taxpayer segment, neither can any group of taxpayers seek to exempt themselves from contributing to the development of Nigeria through paying taxes, except as permitted by law.”

Marshi, who was represented by the Coordinating Director, Modernisation Group, FIRS, Mr. Ossy Chuke, stated that where an NGO engaged in activities from which it derived profit, it would be required to pay taxes on such profits like any other profit-making entity.

“NGOs are not exempted from paying taxes such as Value Added Tax on goods and services. They are also required to deduct and pay personal income tax from salaries and allowances paid to their employees, among others.”

Marshi said the FIRS would provide an elaborate explanation detailing the requirements of various organisations in the country with respect to the payment of taxes.

The FIRS boss also said that the service had centralised all NGO tax issues in its Medium Tax Office in Abuja.

This, he said, was to enable it better identify and monitor NGOs for tax purposes, improve its turnaround time on NGO issues and provide bespoke services to them.

“A more detailed presentation will be made on the tax obligations of the NGOs so that there is greater clarity on the part of taxpayers, tax officers, tax professionals and, of course, NGO operators,” he added.

Marshi told members of the NGOs that their tax files were now domiciled in the MTO and any such files yet to be sent to the office would be transferred shortly.

According to him, the sensitisation programme will “provide information on what types of entities constitute NGOs so that the FIRS can make clear which files are to be transferred to the MTO.”

Source: Punch