PwC highlights issues in Nigeria’s new virtual assets tax rules
PricewaterhouseCoopers (PwC) has raised concerns about Nigeria’s new tax guidelines for virtual assets, noting that while the rules provide clarity, several practical and legal challenges remain. The Nigeria Revenue Service’s guidelines classify and tax digital assets such as cryptocurrencies, NFTs, and stablecoins, but some obligations are not clearly backed by existing tax laws. PwC warns that the lack of a stated effective date could lead to abrupt enforcement. Experts also point out that the guidelines create new compliance requirements for businesses and users.
TLDR
- The Nigeria Revenue Service published “Guidelines on the Taxation of Virtual Assets” and Information Circular No. 2026/21, outlining how various digital assets will be taxed.
- PwC says the guidelines introduce new obligations not expressly stated in Nigeria’s tax laws and do not specify an effective date.
- Virtual asset service providers (VASPs) must withhold taxes, deduct stamp duty in token units, enforce tax ID requirements, and file returns, with severe penalties for non-compliance.
- The guidelines introduce a 1% withholding tax on certain asset disposals, a 7.5% VAT on service charges, and a 1.5% stamp duty on token-to-fiat and fiat-to-token transfers.
- Experts note that enforcement may be easier on regulated platforms than on peer-to-peer transactions, leaving gaps in oversight and compliance.
