Key facts
- Nigeria's Federal Inland Revenue Service (FIRS) has issued new tax guidelines for crypto platforms.
- Cryptocurrency platforms and P2P marketplaces must collect taxes on digital assets.
- These platforms are required to report digital asset transactions.
- Some withheld tax amounts must be paid in originating crypto tokens.
- Value Added Tax (VAT) on digital assets must be remitted in fiat currency.
- The FIRS aims to broaden the tax net and ensure compliance in the digital asset space.
Nigeria's Federal Inland Revenue Service (FIRS) has introduced new regulations compelling cryptocurrency platforms and peer-to-peer (P2P) marketplaces to collect, report, and remit taxes on digital assets. The directive mandates that these entities act as tax collectors for transactions conducted on their platforms. A significant aspect of the new guidelines is the requirement for certain withheld tax amounts to be paid in the same cryptocurrency that originated the transaction. However, Value Added Tax (VAT) on these digital asset transactions must be remitted in Nigeria's official fiat currency, the Naira. This initiative by the FIRS is part of a broader effort to enhance tax revenue collection and ensure that the rapidly growing digital asset sector contributes to the national economy. The agency seeks to bring more entities and transactions within the tax net, thereby improving compliance and fiscal oversight.