WTS in Nigeria

Nigeria raises VAT at a federal level – the first time in decades - however the Federal High Court just recently denied the legal basis for the VAT Act.

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 contribution from Nigeria sheds light on the first transfer pricing decision of the Nigerian tax appeals tribunal and provides a brief outlook on what taxpayers should consider in view of their transfer pricing.

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.

Updates on the finance act of Janurary 13 2020 , that introduced several changes to seven tax laws in Nigeria

Transfer Pricing in Nigeria

Overview of the recent amendments