简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The cryptocurrency tax landscape in Nigeria is still evolving. However, crypto traders are required to pay a 10% tax on all their capital gains once the digital assets are sold off.
What does the law say about Crypto taxation in Nigeria
Cryptocurrencies are generally classified as digital assets subject to taxation in Nigeria today.
On May 28, 2023, former Nigerian president Muhammadu Buhari signed the 2023 Finance Act into law, which includes a provision to tax profits on digital assets, including cryptocurrency.
The new law imposes a 10% capital gains tax on the disposal of digital assets, including cryptocurrency. This tax is payable by individuals, businesses, and other entities that are resident in Nigeria. The tax is calculated on the difference between the purchase price of the digital asset and the sale price.
There are a few important things to note about the present cryptocurrency tax law in Nigeria today:
First, the tax is only payable on realized capital gains, which means that it is only payable when the digital asset is sold or disposed of.
Second, the tax is based on the fair market value of the digital asset at the time of disposal.
Finally, the tax is payable in Nigerian naira (NGN) which means the capital gains will have to be converted to Naira while calculating the capital gains.
Implications of the Crypto Tax Law in Nigeria
Here are the implications of the crypto tax law in Nigeria today:
● Cryptocurrency traders in Nigeria are expected to pay taxes on their profits.
● Taxes are payable once the digital assets are sold.
● Taxes are payable only in Nigerian Naira.
● Crypto traders are expected to report their capital gains for proper taxation.
How to calculate cryptocurrency taxes in Nigeria
To calculate your cryptocurrency taxes in Nigeria, you will need to track your capital gains and losses. You can do this by using cryptocurrency accounting software or by manually tracking your transactions.
Once you have tracked your capital gains and losses, you can use the following formula to calculate your capital gains tax:
Capital gains tax = (Capital gains - Capital losses) * Capital gains tax rate
For example, if you made a capital gain of N100 million from the sale of cryptocurrencies in a given year, and you had no capital losses, then your capital gains tax would be N10 million (N100 million * 10%).
How to pay cryptocurrency taxes in Nigeria
To pay your cryptocurrency taxes in Nigeria, you will need to file a self-assessment tax return with the FIRS. You can do this online or by submitting a paper form.
When filing your tax return, you will need to disclose all of your income, including any income from cryptocurrencies. You will also need to calculate your capital gains tax and other applicable taxes.
Once you have calculated your taxes, you can pay them online or by submitting a cheque or bank draft to the FIRS.
Conclusion
The cryptocurrency tax landscape in Nigeria is still evolving. It is important to stay up-to-date on the latest developments and to consult with a qualified tax advisor if you have any questions about the tax treatment of your cryptocurrency investments.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
There are many brokers that offer too many promotions. Have you ever wondered why they do this? This Could be the story of Markets.com. Before you choose Markets.com, read about the hidden risks they never openly talk about.
An indictment was leveled against two men in the District of Puerto Rico for their alleged involvement in the operation and promotion of OmegaPro, an international investment scheme that has led to financial losses worth over $650 million for investors. Check more about this story
A company director in Malaysia lost over RM300,000 after falling for an online investment scam he found on Facebook.
Both manual and automated forex trading have their strengths and weaknesses. Should you trade manually or use automated systems? Today’s article may give you some clues.