Nigeria Requires Crypto Platforms to Collect, Report, Remit Taxes

Nigeria's revenue agency has issued rules requiring crypto platforms and peer-to-peer (P2P) marketplaces to collect, report, and remit taxes from users.

The Nigeria Revenue Service (NRS) has released guidelines on the taxation of virtual assets, which place exchanges and P2P marketplaces at the center of withholding, reporting, and remittance under the country's existing laws.

Under the guidelines, platforms must withhold 1% of proceeds from taxable disposals of crypto assets, security tokens, and applicable non-fungible tokens. A 10% withholding rate applies to staking, mining, airdrops, and decentralized finance, while token-to-fiat and fiat-to-token transfers are subject to a 1.5% stamp duty.

The withheld amounts are advance payments credited against the taxpayer's final income tax liability. Individuals are taxed at progressive rates, while companies other than small companies face a 30% rate. Stablecoin sales are exempt from the 1% withholding tax.