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Here’s what a ₦1 million crypto trade could cost under Nigeria’s new tax rules
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TechCabal
Crypto users could also pay a 1% withholding tax when disposing of most cryptocurrencies, income tax on realised gains, and Value Added Tax (VAT) on exchange service fees.
The purchase attracts a 1.5% stamp duty of 0.015 BTC (₦15,000/$11.01), leaving the buyer with 0.985 BTC (₦985,000/$722.91).
Depending on the taxpayer’s applicable income tax band under the guidelines, the income tax can rise to 25%.
In practice, a straightforward virtual asset investment will now involve:Transaction Stage Tax Exchange service 7.5 % VAT on exchange fees Stamp duty 1.5% stamp duty Dispose of crypto 1% withholding tax Taxable gains Income taxThis is not Nigeria’s first attempt to tax virtual assets.
Selling them triggers withholding tax and, where profits are realised, income tax.