the Voluntary Asset and Income Declaration Scheme (VAIDS)?
regularize their tax status relating to previous tax periods. In exchange for
fully and honestly declaring previously undisclosed assets and income, tax
payers will benefit from forgiveness of overdue interest and penalties, and the
assurance that they will not face criminal prosecution for tax offences or be
subject to tax investigations. VAIDS ushers in an opportunity to increase the
nation’s general tax awareness and compliance.
What is the Duration and Deadline for VAIDS
July, 2017 to 31st March, 2018. There will be no renewal or extension, once the
scheme period has expired all remaining tax defaulters who have not taken
advantage of its will face the full force of the law.
What are the Benefits of Participating in Nigeria VAIDS
imprisonment of up to 5 years, while the taxpayer will still be required to pay
the tax due along with the associated interest and penalties.
penalty of 10% of the tax due is assessed, along with related interest charges
that accrue at 21% per annum, commencing from the due date of the related tax
charge. In some cases, the penalty assessed is 100% of the tax due and further,
the related assets are liable to be forfeited. Those taking advantage of the
Scheme by declaring honestly and fully will be free from prosecution and will
qualify for the forgiveness of penalties and interest.
payers will be able to transfer assets that they had previously held by
nominees into their own name. It should be remembered that many Nigerians have
lost assets in the course of trying to conceal them from the authorities.
losses typically occur in the event of death or an urgent need to liquidate
assets when required documentation and proof of ownership cannot be provided.
The global focus on illicit financial flows is such that global regulations
will only become tighter with time, thus this opportunity to regularise should
be seized. Declaration allows assets to be legally and formally held by the
What types of Taxes will be covered?
Companies Income Tax, Personal Income Tax, Petroleum Profits Tax, Capital Gains
Tax, Stamp Duties, Tertiary Education Tax.
honest returns is limited to six years, there is no limit where a fraudulent
return has been submitted. A condition of VAIDS is that tax payers will declare
fully and honestly.
entitled to participate in the scheme?
liabilities. The Scheme is specifically targeted at taxpayers who:
from undeclared assets within or outside the country. If tax should have been
paid, VAIDS is providing a once in a lifetime opportunity to declare the tax
outstanding and resolve it definitively.
individual taxpayers the only participants in the Scheme? Can companies make
declarations as well?
individuals, trusts, executors, registered companies and statutory companies.
How do I pay the tax due under VAIDS?
relevant tax authorities including the FIRS and SBIRS, depending on the type of
tax in issue. Payments should be made to the Relevant Tax Authority quoting
your full name and TIN as a reference. The bank will issue a receipt for the
Will I have to pay all the established liabilities at once?
assets but may not have cash. Therefore taxpayers will be allowed to enter into
arrangements to pay outstanding tax liabilities in installments. Taxpayers may,
at the discretion of the relevant authority, be granted up to three years to
pay their liability, but will be obligated to pay interest on the outstanding
What if I do not know how much tax I am owing?
agents of the Relevant Tax Authority can help you to calculate your tax
liability. VAIDS will also be providing extensive training to legal advisers,
tax accountants and other professionals to ensure that taxpayers fully
understand their obligations under Nigeria’s tax laws.
What if I have don’t have TIN and have never paid tax?
first step for persons who have never paid tax. Your application for a TIN will
be fast tracked.
spend time abroad?
Nigeria. It covers Nigerian residents who had taxable undeclared income outside
Nigeria and non – residents who earned undeclared income derived from or
accruing within Nigeria.
make an online declaration, or to appoint a local agent to make the necessary
declaration on their behalf.
What happens to those who do not participate?
found to have under declared their income or assets will be treated as wilful
tax evaders and will therefore face the full force of the law.
world’s leading asset tracing and recovery firms who will track the true assets
of those who have not participated but are believed to have underpaid their
of taxes due with full penalties and interest. In addition, we plan a “Name and
Shame” programme that will reveal the identities of tax evaders.
of profiling certain categories of non-compliant taxpayers for ongoing audits
and investigations, in line with the tax compliance reforms. As such, taxpayers
are encouraged to make the most of the time-limited opportunity available under
the Scheme to declare their incomes and assets, and pay outstanding tax
liabilities to avoid the adverse consequences inherent in the tax enforcement
processes to be implemented by the Relevant Tax Authorities at the end of the
Are Nigerians liable to pay tax on overseas income and
liable to pay tax on their income earned anywhere in the world. Nigerian tax residents
include the following:
Nigeria for at least 183 days within a twelve month period; and
base in Nigeria.
by the taxpayer. If they are not satisfied with its completeness, they may ask
for additional information. Indeed, The Relevant Tax Authorities are empowered
by specific provisions of the relevant tax laws to require participating
taxpayers to produce any books, documents, accounts, returns and other records.
declaration if further tax liabilities are identified. However, all information
must be received within the duration of VAIDS.
Can I declare anonymously?
to get clearance, he must have declared correctly and made payment in his own
name or that of his company as the case may be. Tax declarations are however
treated as confidential by the tax authorities.
be used against me?
Scheme is assured. Measures have been put in place for information received by
the tax authority will be kept in strict confidence, and will not be disclosed
to third parties other than in compliance with extant provisions of relevant
Culled from VAIDS Website
Frequently asked question about the NIGERIAN VOLUNTARY ASSET AND INCOME DECLARATION SCHEME – VAID Deadline penalty date