EXECUTIVE ORDER (ON THE VOLUNTARY ASSETS AND INCOME DECLARATION SCHEME) OF 2017
Order · Finance
Policy date: 2017-01-01
An Executive Order that creates a voluntary scheme for declaring undisclosed assets and income with tax amnesty. It targets high-net-worth individuals and businesses to boost tax compliance and expand the tax base.
EXECUTIVE ORDER (ON THE VOLUNTARY ASSETS AND INCOME DECLARATION SCHEME) OF 2017
What Is This Policy?
An executive order that created a time-limited amnesty period allowing individuals and businesses to voluntarily declare previously undisclosed assets and income, pay outstanding taxes, and receive immunity from prosecution and interest waivers.
Who Does It Target?
High-net-worth individuals with undisclosed income or assets Companies with unremitted tax liabilities Professionals and self-employed persons outside the tax net Landlords and property owners with unassessed rental income
What Does It Aim to Achieve?
Widen the Nigerian tax base, increase tax compliance, recover unpaid taxes without costly litigation, and bring millions of Nigerians into formal taxation.
Key Features
Amnesty Period: A nine-month window (later extended) during which taxpayers could regularise their affairs without criminal prosecution. Interest and Penalty Waiver: Declarants who pay in full during the amnesty period received full waiver of interest and penalties on outstanding taxes. Instalment Payments: Taxpayers could structure payment of outstanding taxes in instalments over a defined period. State Integration: State Internal Revenue Services also participated, allowing declaration of state-level tax liabilities.
Current Status
Rollout Stage: Amnesty period closed; FIRS now using data from scheme and international exchanges to pursue non-declarants Coverage: Nationwide, covering both federal and state taxes Beneficiaries: Nigerian treasury; declarants through waiver of penalties Funding: Revenue measure
How to Access
Submit declaration forms to the relevant tax authority Provide supporting documentation for assets and income declared Pay or agree to a payment plan for outstanding taxes Application method: Contact FIRS or the relevant State Internal Revenue Service.
Important Terms
Immunity applies only to matters specifically declared Misrepresentation invalidates immunity Post-amnesty: FIRS pursuing audit of non-declarants using data analytics and international information exchange
Impact & Metrics
VAIDS generated additional tax revenue and increased Nigeria's taxpayer register by hundreds of thousands.
Official Resources
Website: https://www.firs.gov.ng Contact: Federal Inland Revenue Service (FIRS)
Legal Framework
The Voluntary Assets and Income Declaration Scheme (VAIDS) Executive Order 2017 is issued under the President's executive powers under Section 5 of the 1999 Constitution. It operates under the Companies Income Tax Act, the Personal Income Tax Act, the Federal Inland Revenue Service Act, and the Fiscal Responsibility Act 2007. The Order aligns with OECD standards on tax transparency and automatic exchange of information (AEOI) under the Common Reporting Standard (CRS).