On the eve of his departure from office on May 28, former Nigerian President Muhammadu Buhari signed the Finance Act, 2023, into law. The act introduces a series of tax reforms aimed at modernizing the country’s fiscal framework. Among its provisions was the introduction of a 10% tax on gains from the disposal of digital assets, including cryptocurrencies.
In early 2021, CBN sent a memo to all commercial banks in the country to block the accounts of persons or establishments involved in crypto activities but with this bill passed into law it seems that the CBN ban of cryptocurrency is no longer effective since the government now wants a "
10% tax on gains from cryptocurrencies."
In many cases, governments do require the cooperation of crypto exchanges operating within their jurisdiction to track users’ capital gains. By working with exchanges, authorities can access transaction data and identify individuals or entities for tax purposes. However, the level of cooperation and specific regulations vary from country to country. Some jurisdictions have implemented stricter requirements for exchanges to report user information, while others may have limited regulations or are in the process of developing them.
Nigerian government can be successful with the new taxation law by having crypto platforms that are registered and operating in the country like Patricia, Retimo, Luno etc. pay for their taxes but...Is this tax also applied to individuals using or trading cryptocurrency? If yes... Do you think they will have any luck in taxing individuals using this platforms since we've not really had good results in collecting taxes from physical businesses? Also, most of these crypto merchants charges high transaction fees already and with the new law in place, can these platforms include a tax fee for every transactions without most users noticing?
Share your thoughts.
https://www.google.com/amp/s/cointelegraph.com/news/nigeria-to-tax-crypto-digital-assets-10-on-capital-gains-experts-react/amp