Nigeria Cracks Down on Crypto Tax Evasion

Nigeria's revenue agency has introduced rules requiring crypto platforms to collect and remit taxes on digital asset transactions. The Guidelines on Taxation of Virtual Assets, issued by the Nigeria Revenue Service (NRS), aim to regulate the country's growing cryptocurrency market.

According to the guidelines, exchanges and peer-to-peer (P2P) marketplaces must withhold 1% of proceeds from taxable disposals of crypto assets, security tokens, and non-fungible tokens. A 10% withholding rate applies to staking, mining, airdrops, and decentralized finance activities.

The guidelines also specify that token-to-fiat and fiat-to-token transfers are subject to a 1.5% stamp duty. The withheld amounts are considered advance payments credited against the taxpayer's final income tax liability.