The HMRC Office in Derry will close by 2021, it was announced on Thursday.
Foyle House, near the Duncreggan Road in Derry, is one of ten offices being closed by HMRC over the next five years.
The announcement came as part of HMRC’s modernisation plan for the North of Ireland.
HMRC is moving all of its operations to a central regional office in Belfast. It is not yet known where in Belfast the new regional office will be situated.
SDLP MP for Foyle, Mark Durkan, strongly criticised the decision to close the local tax office.
“This new announcement on top of the recent job-losing restructuring will be greeted by anger and cynicism.
“There are many performance challenges for the due and efficient collection of all tax which will not be dealt by the contraction of the Revenue and Customs service and its concentration in fewer locations.
“Yet again we have a move which shows contempt for good staff, for local customers and for the regional economy.”
Mr. Durkan added: “Treasury Ministers need to listen not just to the valid concerns and grievances from people here but also to the questions raised by many reports about the performance capacity of the Revenue and Customs service being strategically diminished.
“Ministers are presiding over an approach which is shrinking public employment, damaging public service and compromising public finances for the future,” said Mr. Durkan.