The Nigerian government through the Federal Internal Revenue Service (FIRS) and the ministry of Finance, recently launched the Voluntary Assets and Income Declaration Scheme (VAIDS).
It is of absolute importance that as an individual/business generating income within Nigeria, you understand what the scheme is all about and how it affects you.
To that end, the awesome people at TBCA recently went on a tour of coworking hubs in Lagos to boost awareness of the scheme, as well as how we can take advantage of it.
TBCA's Jide Rotilu also hosted a VAIDS Q&A session with Folajimi Akinla, Manager, Tax and Regulatory Services, PwC Nigeria.
This post is a summary of some of the key things they discussed about VAIDS during the interview.
Check them out below:
1. What is VAIDS?
VAIDS is a tax amnesty programme organized by the Federal Ministry of Finance, together with the Federal Internal Revenue Service (FIRS) and the 36 states of Nigeria.
2. What is the purpose of the VAIDS scheme?
VAIDS is an opportunity for individuals who have defaulted in their taxes over the past six years to come forward, disclose and make payments.
3. How does VAIDS benefit me?
If you’ve defaulted on tax payment in the past, you can take advantage of the scheme to get waivers on interests and penalties, prosecutions and comprehensive audits.
4. What taxes does VAIDS cover?
The scheme covers all federal taxes: education tax, companies’ income tax, personal income tax, value-added tax, stamp duties, etc
5. Who is VAIDS targeted at?
VAIDS is targeted at all income earning entities within Nigeria, whether as individuals or corporate bodies. This includes SMEs as well. If you earn an income within Nigeria, you’re required to disclose it.
6. Is there a deadline for participating in the scheme? Will there be an extension?
The deadline is March 31st 2018. There is currently no indication as to whether there’ll be an extension
7. What happens if I don’t comply before the deadline?
Defaulters will be made to pay the outstanding taxes as well as interest and penalties. You will also be exposed to comprehensive audit and tax prosecution.
As stated above, the deadline for compliance is March 31, 2018. You can visit the VAIDS website for additional information.
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