The Nigeria Revenue Service published guidelines requiring cryptocurrency exchanges and P2P marketplaces to withhold, report and remit taxes on digital asset transactions.
These guidelines have the particularity that amounts withheld for income tax and stamp duty may be paid in the native token of each transaction, while VAT must be remitted in the currency used for payment.
Under the new framework, platforms must withhold 1% of gains from taxable disposals of cryptocurrencies, security tokens and applicable NFTs. For staking, mining, airdrops and decentralized finance transactions, the withholding rate rises to 10%, while token-to-fiat transfers are subject to a stamp duty of 1.5%. Stablecoin sales are exempt from the 1% withholding.
Nigeria implemented a tax reform on January 1, 2025 through the Nigeria Tax Act and the Nigeria Tax Administration Act, legislation that classifies digital assets as taxable property. The regulatory framework replaces the previous treatment established by the Finance Act 2023, which imposed a flat rate of 10% on capital gains from cryptocurrency disposals, and adds clarifications on gain valuation and tax withholding and settlement mechanisms.
Source: https://www.nrs.gov.ng/uploads/Guidelines_on_taxation_of_Virtual_Assets_31_7_26_7cd2ef8dab.pdf
Disclaimer: Crypto Economy Flash News are based on verified public and official sources. Their purpose is to provide fast, factual updates about relevant events in the crypto and blockchain ecosystem.
This information does not constitute financial advice or investment recommendation. Readers are encouraged to verify all details through official project channels before making any related decisions.
Be the first to comment