Nigeria Releases Crypto Tax Guidelines, Platforms Must Withhold and Report

Nigeria's tax authority has released guidelines for taxing cryptocurrency and virtual assets. The Nigeria Revenue Service (NRS) says platforms must collect, report, and remit taxes under the country's existing legal framework.

Exchanges and peer-to-peer marketplaces are positioned as the primary tax 'withholding and reporting' gatekeepers. Withholding rates differ by activity: 1% applies to taxable disposals, while a 10% rate applies to staking, mining, airdrops, and certain DeFi-related items.

Stamp duty on token-to-fiat and fiat-to-token transfers is set at 1.5%, and must be remitted in the originating token, while VAT is paid in fiat. Withheld amounts are treated as advance payments credited against a taxpayer's final income tax liability.