Nigeria’s revenue agency has issued rules requiring crypto platforms and peer-to-peer (P2P) marketplaces to collect, report and remit taxes, including paying some withheld amounts in digital tokens.
In its Guidelines on Taxation of Virtual Assets, the Nigeria Revenue Service (NRS) said income tax deducted at source and stamp duty “shall be remitted to the Service in the originating token of the transaction.” Value-added tax, by contrast, must be remitted in the currency used for the payment.
The guidelines 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…
