JUST IN: Nigeria issues first tax framework for crypto and virtual assets

Nigeria has issued its first formal framework for taxing virtual assets, including cryptocurrencies, exchanges, peer-to-peer platforms, and other digital asset businesses. The Nigeria Revenue Service (NRS) published Guidelines on the Taxation of Virtual Assets, which require taxpayers and service providers to maintain transaction records, file relevant tax returns, and determine taxable income using the fair market value of virtual assets on the date of each transaction.

The guidelines impose reporting, record-keeping, and compliance obligations on virtual asset service providers (VASPs) and P2P marketplace operators for transactions conducted on their platforms. This move comes as part of President Bola Tinubu's July 18 executive order establishing a coordinated framework for the regulation of virtual assets, signaling Nigeria's shift towards a more comprehensive tax regime.

The framework aims to provide clarity, certainty, and consistency in the administration of Nigeria's tax obligations related to virtual assets, promoting voluntary compliance and greater transparency in digital asset transactions.

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