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A new Finance Act is bringing changes for the VAT landscape in Nigeria.
Part 2 of the Income Tax (transfer pricing) Regulations 2018 (TP Regulations) focuses on compliance with the arm’s-length principle, Advanced Pricing Agreements and corresponding adjustments. Section 5 of the TP regulations clearly cites that in determining whether a transaction is compliant with the arm’s-length principle, such a transaction must be guided by the available TP methods as listed thereunder.
The VAT Act was one of the seven principal tax statutes amended by the Finance Act 2019 and came into force on 13 January 2020.
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