PwC Warns of Compliance Challenges in Nigeria's Virtual Asset Tax Framework

PwC Nigeria has raised concerns over several unresolved legal and practical issues in Nigeria's new framework for taxing virtual assets, warning that ambiguities in the rules could create compliance challenges for taxpayers, companies, and Virtual Asset Service Providers (VASPs).

The professional services firm said the guidelines issued by the Nigeria Revenue Service (NRS) provide greater clarity on the tax treatment of digital assets but leave important questions unanswered, particularly around wallet transfers, asset valuation, withholding tax, and the compliance obligations imposed on VASPs.

PwC raised the concerns in a tax alert entitled: “Taxing the intangible: A critical analysis of the NRS guidelines on taxation of virtual assets.”