WTS in Nigeria

In this article we highlight crucial changes that would arise from the Nigerian tax reforms, including CIT, VAT, and PIT. 

Recent tax developments from nine countries on the continent.

In August 2024, Nigeria introduced guidelines for implementing a zero-duty rate on basic food items from July to December 2024, aiming to reduce food prices. Additionally, a proposed windfall tax of 50-70% on Nigerian banks' FX profits aims to fund infrastructure, education, and healthcare.

Recent tax developments from nine countries on the continent.

Recent tax developments from eight countries on the continent.

As we noted in our 2024 Tax Outlook, the Nigerian Tax system is currently undergoing significant reviews with the aim of improving the system. In this article, we identify some of the notable proposals and updates in the tax reform process.

The GloBE Model Rules were released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) in December 2021. This article further examines the importance of efficient implementation, to ensure these guideliens achieve the desired economic result. 

As times are changing, so is the Nigerian tax landscape. In this article, we highlight some of the recent tax updates in Nigeria in the first quarter of 2024.

Recent tax developments from eight countries on the continent.

On 27^th February 2024, the Federal Government of Nigeria launched the Expatriate Employment Levy Handbook which introduced the Expatriate Employment Levy, a mandatory contribution levied on employers of expats in Nigeria.

In line with the constitutional power to make relevant executive Orders and the provisions of the Nigerian Oil and Gas Industry Content Development Act, 2010, the President of the Federal Republic of Nigeria enacted the Oil and Gas Companies.

Globally, the tax ecosystem is shaped by Court/Tax Tribunal decisions and executive directions.

Recent tax developments from eight countries on the continent.

In October 2023, the Federal Inland Revenue Service (FIRS) issued a guideline on desk examination, tax audit, investigation and inquiry processes to offer clarifications on the nature and scope of the FIRS’ inquiry process to avoid conflict of roles thereby replacing prior communications on the subject.

The Federal Inland Revenue Service recently published Guidelines for the Refund of Value Added Tax paid by Diplomats, Missions and International Organisations on Goods and Services purchased to provide such qualified persons with a framework for processing such requests for VAT refunds.

Recent tax developments from six countries on the continent.

Recent tax developments from six countries on the continent.

It is our pleasure to present to you the second edition of our WTS Global Mergers & Acquisitions Newsletter 2023. Presenting updates from 9 countries with a focus on the international M&A industry.

The ever-evolving nature of tax law in Nigeria results in regular updates in ICT regime. Find out some of the recent and proposed changes to Nigeria’s ICT laws.

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