Nigeria: Tax amnesty regarding tax liability
The Federal Inland Revenue Service (FIRS) has issued guidance introducing a waiver of penalties and interest on some unpaid tax for the periods between 2013 and 2015. Taxpayers who are eligible for the penalty and interest waiver must declare the
See MoreNigeria: Withholding tax rate for construction-related payments
The Finance Ministry has approved recommendations from IRS to withdraw and revoke a rate reduction for withholding tax under the companies’ income tax rules. The withholding tax regulations had effective on 1st January 2015 and from that time the
See MoreNigeria: Country-by-country reporting update
A Multilateral Competent Authority Agreement (MCAA) has been signed by Nigeria for executing the exchange of country-by-country (CbC) reports. This reports will include summary of income earned and tax paid, and the number of employees positioned by
See MoreNigeria: IMF Managing Director Speaks at National Assembly
In a speech to the National Assembly on 6 January 2016 the IMF Managing Director summarized the global and regional economic position and the implications for national policy. The sub-Saharan Africa region is entering a period of reduced commodity
See MoreNigeria: Budget for the year 2016
The budget measures for 2016 were delivered to the National Assembly on 22nd December 2015. The government proposes to reduce reliance on oil revenues (which are expected to amount to NGN 820 billion) in 2016. Non-oil revenues, comprising company
See MoreNigeria: Implications of BEPS proposals
The Federal Inland Revenue Service (FIRS) has incorporated into its tax audit procedures certain of the recommendations included in the OECD’s base erosion and profit shifting (BEPS) project. For instance, the tax authority is scrutinizing
See MoreNigeria: Federal High Court reversed a decision regarding companies fixed base
The Federal High Court has reversed a decision of the Tax Appeal Tribunal in a case concerning if a corporation had a fixed base in Nigeria and concluded that the foreign corporation did not have a fixed base in Nigeria and was not responsible for
See MoreNigeria: Safe harbour concept in the transfer pricing regulations
The transfer pricing regulations in Nigeria are formally known as the ‘Income Tax (Transfer Pricing) Regulations No 1, 2012”. These regulate contacts between connected taxable persons or controlled transactions. The objective of the
See MoreNigeria: Convention on Mutual Administrative Assistance on tax matters entered into force
As amended by the 2010 protocol, the multilateral agreement on Mutual Administrative Assistance regarding tax matters has been entered into force on 1st September 2015 in Nigeria and it generally applies from 1st January
See MoreNigeria: Reverse charge does not apply where nonresident companies render services to a resident
The Tax Appeal Tribunal (TAT) in Nigeria has delivered a decision in the case “Gazprom Oil & Gas Nigeria Limited (Gazprom) Vs FIRS on 10th June 2015. This concerns the imposition of a VAT charge on services by a nonresident company (NRC) to
See MoreNigeria: VAT exemption for basic food items
According to Nigeria’s tax law, basic food items are exempt from VAT. The Federal High Court (Lagos) of Nigeria has issued a decision concluding that packaged water is a basic food item and is exempt from VAT. The decision was issued on 11th May
See MoreNigeria: ECOWAS common external tariff to be implemented
The Nigerian Customs Service has issued a circular on 23rd June 2015 for accepting the implementation of the Economic Community of West African States (ECOWAS) Common External Tariff (CET) 2015-2019. Benin, Burkina Faso, Cape Verde, Gambia, Ghana,
See MoreNigeria: System allowing electronic tax payment
The Federal Inland Revenue Service has announced an e-tax system that permits taxpayers to make electronic remittances. All taxes and levies payable to the tax administration in Nigeria can be paid by using this new
See MoreNigeria: Budget proposal 2015 passed by parliament
The parliament has passed 2015 Budget proposal on 28th April 2015. There was a proposal in Budget to raise VAT rate but the rate is still 5%. Future information on this topic will be reported
See MoreDTA between Nigeria and Spain enters into force
The Income and Capital Tax Treaty between Nigeria and Spain will enter into force on 5th June
See MoreNigeria: IMF comments on fiscal policy
The International Monetary Fund (IMF) has concluded bilateral discussions with Nigeria under Article IV of the IMF’s articles of agreement. The staff report together with a selected issues paper commenting on Nigeria’s economic situation were
See MoreDTA between Nigeria and Korea (Rep.) entered into force
The Income Tax Treaty between Nigeria and Korea Republic has entered into force on 21st March 2015 and it will be applicable from 1st January
See MoreNigeria: IMF comments on fiscal policy
On 4 March 2015 the IMF issued a press release on the conclusion of consultations with Nigeria under Article IV of the IMF’s articles of agreement. Nigeria’s economy has grown strongly over the past decade at an average of almost 7% per annum
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