Nigerian Government to Introduce Crypto, Digital Assets Tax come 2023

According to Mrs. Zainab Ahmed, Minister of Finance, Budget, and National Planning of Nigeria, the 2022 Finance Bill contains a provision to tax cryptocurrencies and other digital assets.

In an unusual digital event on Thursday, Zainab Ahmed updated the National Economic Council (NEC) on the fundamental elements of the 2022 Finance Bill, according to a statement released by Laolu Akande, vice president Yemi Osinbajo’s spokesperson.

The governors of Sokoto, Borno, Kaduna, Kebbi, and other states provided their opinions on the measure after she finished speaking.

Before President Muhammadu Buhari presents the draft Finance Bill to the National Assembly, the NEC agreed to revise it with new suggestions from state governors as it moves forward to the Federal Executive Council (FEC).

The proposed bill, according to the minister, is built on five key policy pillars. She listed the factors as tax equality, addressing climate change, fostering job growth and economic development, reforming tax incentives, and generating income and managing taxes.

Additional information regarding FG’s proposed bitcoin tax.

In line with the government’s policy of enhancing cross-border and international taxation of expanding e-commerce with emerging markets, the minister claimed that the proposed bill clarified the taxation of cryptocurrencies and other digital assets.

In particular, laws related to the public financial management of the federation are what the bill “seeks to amend and offer extensive provisions to,” Ahmed said. Chargeable assets, loss exclusion, and replacement of business assets are some of the other features of the Finance Bill, she continued.

A change to the bill’s Chargeable Assets section states that, “subject to any exceptions established by this Act,” “all types of property, whether situated in Nigeria or not, shall be assets for this Act, including options, loans, digital assets, and incorporeal property generally.”

According to the release, Mrs. Zainab Ahmed said that under the Tax Equity pillar, all economic sectors would be subject to taxes, including the capital gains tax on digital assets, cable undertakings, and lottery and gaming businesses.

She claimed that by improving this policy, Nigeria will join the elite group of countries that currently tax digital assets. The other nations that now tax digital assets are the UK, the US, Australia, India, Kenya, and South Africa.

Bank accounts for cryptocurrency dealers or other businesses engaged in cryptocurrency transactions should be closed, according to a directive by the Central Bank of Nigeria (CBN) in 2021.

The apogee bank further urged people to stay away from crypto assets, cautioning that they are often used to finance nefarious activities. As it pushes for the adoption of digital assets across the nation, the Securities and Exchange Commission (SEC) recently revealed that it will not consider promoting cryptocurrencies.

The Nigerian Securities and Exchange Commission (SEC) has no plans to use cryptocurrency in its pursuit of digital assets. At least until regulators agree on the criteria that safeguard investors from the market’s startling volatility.