WHAT QUALIFIES AS VIRTUAL ASSETS OR VIRTUAL ASSETS TRANSACTION?
CATEGORY 1
Crypto currencies and Exchange Tokens – e.g. Bitcon, Ether, Solana, BNB etc.
CATEGORY 2
Stable Coins and Payment Tokens – e.g. USDT, USDC, BUSD, DAI, PYUSD etc.
CATEGORY 3
Security and investment tokens – e.g. – Tokenised equity, revenue sharing tokens, asset-backed tokens, tokenised bonds, and other tokenised assets.
CATEGORY 4
Utility and governance tokens – e.g. – Gaming tokens, access tokens, DAO governance votes, staking derivative tokens, receipt tokens etc.
CATEGORY 5
NFTs – e.g. – Digital art, music NFTs, collectibles, property NFTs etc.
CATEGORY 6
Sovereign digital currency – e.g. – eNaira; foreign CBDCs held by Nigerian residents.
APPLICABLE TAXES
- INCOME TAX
- VAT
- STAMP DUTY
- COMBINATION OF ALL ABOVE
TAXABLE EVENTS
- Purchase of VA with fiat — VASP or P2P escrow
- Cross border B2B payment – Naira to token conversion by intermediary
- Sale of VA for fiat – VASP or P2P escrow (Category 1 & 3)
- Payment for goods/services using VA
- Employment income or emoluments paid in VA or professional fees received in VA
- Mining, Staking rewards received
- Airdrop/ Hard fork distribution — realizable or No realizable FMV at receipt
- NFT sale by creator or by investor
- DeFi yield, lending and liquidity rewards
- Gift of VA to third party
- Collateral liquidation on DeFi loan default
NON – TAXABLE EVENTS
- Holding of Virtual Assets
- Transfers Between Wallets
- Staking Lock-Up
- Minting of Non-Fungible Tokens
- Tokenisation of Real-World Assets
- Collateralised Loans
- Taxable Supply
- Central Bank Digital Currencies