Nigeria Implements 10% Crypto Tax as President Approves Finance Act

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To account for the increasing prominence of cryptocurrencies, a new measure has been introduced to impose taxes on them. As a result, profits made from selling digital assets, like cryptocurrencies, will now be subject to a 10% tax

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On May 28, Nigeria’s outgoing President Muhammadu Buhari signed the Finance Act, 2023 into law on his last day in office. This legislation introduces various tax reforms to modernize the country’s tax system. As per the new law, profits generated from selling digital assets, including cryptocurrencies, will now be subjected to a 10% tax.

The comprehensive bill was created to promote transparency in the government, enhance tax collection, and boost the economy. As cryptocurrencies gain more prominence, the measure aims to impose taxes on them.

Also Read: Central Bank of Nigeria (CBN) Holds Firm on Restricting Withdrawal of Crypto from Commercial Banks

Acknowledging Cryptocurrencies as Legitimate Assets

The government has taken this step to ensure that individuals who own digital assets contribute their fair share of taxes for the progress of Nigeria. By doing so, the government aims to create a fair environment for everyone. This demonstrates Nigeria’s recognition of the significance of digital assets in politics and the economy, and its commitment to updating its tax system accordingly.

According to Barnette Akomolafe, the CEO of crypto payments service M7pay, the introduction of additional taxes could be seen as a move towards acknowledging cryptocurrencies as legitimate assets and incorporating them into the existing financial and regulatory framework. This comes after the Central Bank of Nigeria banned commercial banks from serving cryptocurrency exchanges in February 2021.

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Another cryptocurrency expert from the region cautioned that assessing the value, monitoring transactions, and dealing with cross-border aspects of digital assets could pose challenges in terms of taxation. They emphasized the importance of governments establishing clear guidelines and offering adequate education and support to taxpayers. Many cryptocurrency enthusiasts expressed agreement with this perspective.

Also Read: Withdrawals Suspended by Nigerian Crypto Company following BTC and Naira Compromise : Patricia

Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.

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  • Asad

    Asad is a dynamic and talented cryptocurrency content author who brings a wealth of knowledge and enthusiasm to every article. With a deep understanding of blockchain technology and a passion for digital assets, Asad's writing is both informative and engaging.

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