President Buhari signs Executive Order to promote local content

President Muhammadu Buhari, on Monday 5 February 2018, signed the ‘Executive Order 5 for Planning and Execution of Projects, Promotion of Nigerian Content in Contracts and Science, Engineering and Technology’ (the Order).

FEC Approves Revised National Tax Policy

National Tax Policy Implementation Committee presents report on Tax Law Reforms

The National Tax Policy Implementation Committee (NTPIC or the Committee), on Friday 2 February 2018, presented its progress report on the review of tax laws and regulations, and proposed tax reforms to the Minister of Finance (MoF), Mrs. Kemi Adeosun.

FEC Approves Revised National Tax Policy

Lagos State House of Assembly passes Land Use Charge Bill

The Lagos State House of Assembly, on Monday, 29 January 2018, passed the Land Use Charge Law, 2018 (LUCL). LUCL, with the Governor’s assent, will replace the extant Land Use Charge Law, No. 11 of 2001.

Nigeria signs double tax treaty with Spain into law

President Muhammadu Buhari, on Friday, 26 January 2018 assented to the Avoidance of Double Taxation Agreement between the Federal Republic of Nigeria and the Kingdom of Spain (Domestication and Enforcement) Act, 2018. The double tax agreement (DTA) between Nigeria and Spain had been awaiting ratification by the legislature for about nine years. The legislature commenced the process of ratifying the DTA with Spain in 2016, in line with the provisions of Section 12(1) of the Nigerian Constitution which precludes treaties from having the force of law until they have been enacted by the National Assembly. The ratified DTA was recently forwarded to the Executive for final assent. The Presidential assent of the DTA with Spain is a welcomed development given that there are quite a number of signed DTAs between Nigeria and other trade partners which are still pending ratification. It is expected that the DTA between Nigeria and Spain…

Nigerian legislation and its shades of gray – Value Added Tax

In the last two years and within 7 months apart, two divisions of the Tax Appeal Tribunal (TAT), in Abuja and Lagos, gave conflicting decisions on two cases with similar facts. The underlying issue for consideration was the applicability of Value Added Tax (VAT) is applicable on services rendered by a non-resident1 to a Nigerian company.

Nigeria issues the Income Tax (Country-by-Country Reporting) Regulations 2018

Nigeria has issued the Income Tax (Country-by-Country Reporting) Regulations 2018 (the CbCR Regulations). The Regulations are part of the implementation plans under Action 13 of OECD’s Base Erosion and Profit Shifting (BEPS) project.

The new import and export guidelines: Any respite for the trader?

Monday, 1 January 2018, did not only mark the celebration of New Year in Nigeria, it also heralded the effectiveness of the revised import and export guidelines (the Guidelines) issued by the Federal Government of Nigeria (FGN).

OECD Council approves the 2017 updates to OECD model tax convention

The Organisation for Economic Cooperation and Development (OECD), on 18 December 2017, released the 2017 edition of its Model Tax Convention on Income and Capital (MTC 2017). MTC 2017 is an update to the Model Tax Convention issued in 2014, and consolidates the changes resulting from the Base Erosion and Profits Shifting (BEPS) Project under the following action plans: • Action 2 (Neutralising the Effects of Hybrid Mismatch Arrangements) • Action 6 (Preventing the Granting of Treaty Benefits in Inappropriate Circumstances) • Action 7 (Preventing the Artificial Avoidance of Permanent Establishment Status) and • Action 14 (Making Dispute Resolution More Effective) While it is not binding on countries, OECD’s Model Tax Convention on Income and Capital provides clear modalities for taxing income and capital, with a view to eliminate double taxation in different jurisdictions. It is expected that MTC 2017 will be a basis for negotiating future bilateral tax treaties…

Tax policy on SMEs in Nigeria – How fair?

Small and medium enterprises (SMEs) are the bedrock of the Nigerian economy. They serve as an important source of employment generation, economic dynamism, competition and innovation; thus contributing to national growth and poverty alleviation.

NEPC calls for submission of baseline data for 2017 export ratings

The Nigerian Export Promotion Council (NEPC) has requested qualifying exporters to submit baseline data for the determination of export ratings for the 2017 fiscal year i.e., incentive rates applicable under the revised export expansion grant scheme (“the Revised EEG” or “the Scheme”). This follows a similar request made earlier in the year for submission of 2013 to 2016 baseline data.