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Legitimisation or revenue grab? Top Web3 lawyer Senator Ihenyen on Nigeria’s new Virtual Assets Tax Guidelines
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Technext
One-on-one with Senator Ihenyen on NRS’ Virtual Assets Tax GuidelinesTechnext: The new NRS framework transitions crypto profits from the previously established flat 10% capital gains tax to a progressive personal income tax, which could scale up to 25%.
Ihenyen: VASPs and P2P escrows are now required to deduct a 1% withholding tax at source upon execution of a transaction.
TN: Interestingly, the NRS has exempted the sale of stablecoins from this 1% withholding tax.
Ihenyen: The exemption of stablecoins from the 1% gross withholding tax is very significant.
I would also recommend a 24-month companies’ income tax break and an express declaration that any virtual asset-related tax obligation predating the commencement of the Nigeria Tax Act is unenforceable.