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Posted By Udokabestluv On September 18th, 2020
The Federal Inland Revenue Service has clarified the directive on self certification by bank account holders.
The Federal Government Twitter account had erroneously tweeted that all bank account holders in Nigeria were to obtain the self certification forms from their bank. The tweet has now been deleted.
In 2014 the Organisation for Economic Cooperation and Development (OECD) had developed a common reporting standard (CRS) with which members could exchange information about people that have bank accounts and other financial dealings in multiple countries. Read more about the CRS here.
In compliance with that protocol, people who have bank accounts in other countries and foreigners who have bank accounts in Nigeria are required to obtain, fill and submit the self certification forms. This does not apply to all bank account holders in Nigeria. (This is to enable governments to collect tax from their citizens that are based abroad). The banks are expected to know the customers that this directive applies to (due to the Know Your Customer [KYC] programme) and to inform them of the directive.
Here is the FIRS statement.
FIRS Nigeria @firsNigeria
This is to clarify the publication for financial institutions account holders in Nigeria to complete the self certification form, pursuant to the Income Tax (Common Reporting Standard) Regulations 2019 which is for the fulfilment of Automatic Exchange of Information Requirements.
The Self Certification form is basically to be administered on Reportable persons holding accounts in Financial institutions that are regarded as “Reportable Financial Institutions” under the CRS. Reportable persons are often non-residents.
and other persons who have residence for tax purposes in more than one jurisdiction or Country. Financial Institutions are expected to administer the Self Certification form on such account holders when information at its disposal indicates that the Account holder is a person
resident for tax purpose in more than one jurisdiction. The information that indicates an account holder is a resident for tax purposes in more than one jurisdiction,is expected to be available to Financial Institutions during account opening processes for the KYC and AML purpose
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