Virtual asset tax rules to reshape Nigeria’s crypto market, says PwC

It said the guidelines marked a further shift in Nigeria’s regulatory approach from restrictions towards formalisation of the virtual-asset industry.

However, it noted that the guidelines did not specify an effective date, despite introducing obligations that are not expressly contained in the Nigeria Tax Act (NTA) or Nigeria Tax Administration Act (NTAA).

PwC said a single virtual-asset transaction could trigger multiple tax liabilities depending on the nature of the transaction and the applicable taxable event.

PwC flagged potential implications of the stamp-duty provision, noting that the NRS position could imply a broader 1.5 per cent stamp-duty exposure for transfers of goods and intangible property.

It added that transactions of N10 million or less should, based on the law, be exempt from stamp duty, and urged the NRS and VASPs to consider the issue when configuring their systems.