The Federal Inland Revenue Service (FIRS) issued an Information Circular on 14th June 2024, to clarify the tax treatment of foreign exchange (forex) transactions (‘the Circular’). The Circular aims to improve compliance and transparency among taxpayers by distinguishing between realized and unrealized exchange differences. It clarifies the differences between accounting practices under International Financial Reporting Standards (IFRS) and tax regulations on the tax treatment of these forex transactions.
FIRS ISSUES NEW GUIDELINES ON TAX TREATMENT OF FOREIGN EXCHANGE TRANSACTIONS
