Purpose
The purpose of these guidelines is to provide an administrative guide on the taxation
of VAs in Nigeria, including –
(a) The tax obligations of persons engaged in VAs transactions;
(b) The registration, reporting, filing and record keeping obligations applicable to
taxpayers and VAs service providers;
(c) The valuation and computation of taxable income arising from VAs transactions
(d) Clarity in the administration and enforcement of the tax laws relating to VA.
Legal Framework
(a) Section 4 of the Nigeria Revenue Service Establishment Act, 2025;
b) Ninth Schedule to the Nigeria Tax Act, 2025 (the “NTA”);
(c) Section 79 and the Fifth Schedule to the Nigeria Tax Administration Act, 2025 (the “NTAA”); a (d) Any relevant provision under the above-mentioned Acts relating to VAs.
Applicable Rates and Collection of Tax
Income tax on gains on disposal: Progressive rates for individuals, 30% for companies other than small companies.
Income tax on disposal proceeds deducted at source for assets in Category 1, 3 and 5 where applicable: WHT rate of 1% on gross disposal proceeds.
Income tax on gains on disposal- Category 2 stable coins: Progressive rates for individuals, 30% for companies.
Income tax on income receipts (staking, mining, airdrops, DeFi yield) (Treated as passive income). 10%
Income tax on income from consultancy/professional fees: 5% or 10% as applicable.
Stamp duty on TOKEN/FIAT transactions: 1.5%
VAT on VASP service fees: 7.5%
Income tax on VASP profits: 30%, subject to section 57 of the NTA.
Taxpayer Obligations
(1) Any person engaged in VAs activities shall register for tax purposes and obtain a Tax ID.
(2) VASPs and P2P escrow operators are required to make a valid Tax ID a precondition for account activation in accordance with section 8 of the NTAA.
Obligations of (VASPs) Virtual Asset Service Provider(s)
(a) Deduct tax from taxable transactions outlined in these Guidelines
(b) Collect stamp duty where applicable as provided under these Guidelines
(c) Charge and account for VAT on taxable supplies
d) Remit all taxes collected or withheld, to the relevant tax authority within the time specified in NTAA or the Deduction of Tax at Source (Withholding) Regulations
(e) Submit all returns provided in sections 11, 22, 25, 28 and any other relevant returns provided under the NTAA
(f) Maintain records in accordance with section 31 and the Fifth Schedule to the NTAA.
Non-Compliance Penalty
Failure to register Penalty:
₦50,000 (first month); ₦25,000 per subsequent month.
Failure to file returns or filing incomplete returns:
₦100,000 (first month); ₦50,000 per subsequent month of default.
Failure to keep books and records:
₦50,000 (company); ₦10,000 (individual).
Failure to deduct tax at source:
40% of the amount not deducted.
Failure to remit tax deducted at source:
10% per annum + CBN MPR interest + amount deducted but not remitted.
VASP or P2P marketplace operator noncompliance:
₦10,000,000 (first month); ₦1,000,000 per subsequent month of default.
False or fictitious VAT refund claim:
100% of amount claimed + CBN MPR interest.
Non-payment of tax — Naira transactions:
10% of amount due + CBN MPR interest.
Non-payment of tax — foreign currency transactions:
10% of amount due + SOFR plus spread.
Failure to attend to demands, request or notices:
₦100,000 (first day); ₦10,000 per subsequent day of default.
Failure to disclose facts in a dutiable instrument; and ₦100,000 (administrative penalty):
Fine of ₦50,000 (on conviction), imprisonment term not exceeding three years or both fine and imprisonment.