WTS in Nigeria

Recent tax developments from six countries on the continent.

August 2022 saw the Nigerian Ministry of the Interior release a circular informing the public of a revised Handbook on Expatriate Quota Administration.

Following the new regime for value-added tax for non-resident persons in Nigeria, the Federal Inland Revenue Service (FIRS) issued ‘The Guidelines on Simplified Compliance for Value Added Tax (VAT) for Non-Resident Suppliers’ (the guidelines).

11 October 2021 saw the Federal Inland Revenue Service (FIRS) issue guidelines for VAT compliance for non-resident suppliers who render digital services taxable in Nigeria.

Awareness and compliance with Nigeria’s Income Tax (Transfer Pricing) Regulations 2018 has gained increased momentum and attention among associated taxable persons and tax professionals.

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