Nigeria: 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
See MoreNigeria: Stock exchange rules regarding related-party transactions
The Nigerian Stock Exchange has issued rules for lending transactions with related parties or interested persons to guard against the risk that interested persons could influence an issuer, its affiliates or associated companies. One provision is
See MoreNigeria: Tax-free treatment period for pioneer certificates has been reduced
The Nigerian Investment Promotion Council (NIPC) has reduced the available tax-free treatment period from 5 years to 3 years on the basis of the “Pioneer Status Incentive” program. It appears however that the NIPC is still issuing pioneer
See MoreNigeria: Reduced withholding tax rate regarding construction activities
The withholding tax rate has reduced from 5% to 2.5% which is applicable to all aspects of building, construction, and related activities. But for survey, design, and deliveries this withholding tax rate remains 5%. This withholding tax rate effects
See MoreNigeria: Nonresident companies must file income tax return on real profits basis
The Federal Inland Revenue Services (FIRS) in Nigeria has issued a notice demanding all nonresident companies with a permanent establishment (PE) or fixed base (FB) to file tax returns on real basis. The new directive will be applicable to tax
See MoreNigeria-Qatar Income Tax Treaty initials
An Income Tax Treaty between Nigeria and Qatar has initialed on 11th February 2015. Further details of this treaty will be reported
See MoreNigeria: Penalty and interest rates for unpaid tax has approved
The Federal Inland Revenue Service (FIRS) has released the accepted penalty and interest rates to be applied for the year 2015 on 2nd February 2015 regarding taxes not paid within the given periods. The 15% interest rate is determined while the
See MoreNigeria: Public notice of new filing rules for non-resident companies
The Federal Inland Revenue Service (FIRS) has issued a public notice in accordance with section 55 of the Companies Income Tax Act (CITA) on 28th January 2015 requiring all resident and non-resident companies to file their tax returns on a real
See MoreNigeria: The Budget Proposal 2015 presents
The Coordinating Minister for Economy and Finance in Nigeria has presented the Budget proposal for the year 2015 to the National Assembly on 17th December 2014. The appropriation bill was talked in the second reading of the Senate on 15th January
See MoreNigeria: Reduction of taxes on transfer of property
The Lagos State Governor has issued Executive Order No. EO/BRF/001 of 2015 on 5th January 2015, which decreases taxes on transfer of property in Lagos. This order decreases the fees and charges payable for processing Governor's consent in respect of
See MoreNigeria: First audit cycle under new transfer pricing regulations starts
The Federal Inland Revenue Service (FIRS) in Nigeria has built a Transfer Pricing Division on November 2013 that is accountable for the execution and administration of the Income Tax Transfer Pricing Regulations No.1 2012 (TP Regulations). This
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