Abuja: TECHz – News Desk
The Nigeria Revenue Service (NRS) has officially released new Guidelines on the Taxation of Virtual Assets, creating a structured administrative framework for the taxation of digital asset transactions across the country. The guidelines aim to regulate activities involving cryptocurrencies, stablecoins, tokenised assets, and other digital holdings.
The newly issued framework targets a broad spectrum of the digital economy, specifically applying to taxpayers, Virtual Asset Service Providers (VASPs), Peer-to-Peer (P2P) marketplace operators, tax practitioners, and all entities or individuals engaged in virtual asset activities. The guidelines outline strict tax obligations, including registration requirements, reporting duties, record-keeping responsibilities, and valuation principles. They comprehensively cover a wide array of virtual asset transactions, such as trading and exchange operations, brokerage commissions and transaction fees, custody and wallet services, token issuance, mining, and staking, along with decentralised finance (DeFi) activities and investment gains.
Under the new rules, profits generated from virtual asset transactions by companies will be subject to Companies Income Tax. Medium and large corporate entities are expected to pay the standard 30% corporate income tax rate, while individuals will be taxed under the progressive personal income tax regime. The NRS also provided clarity on non-taxable events, noting that retaining a virtual asset without disposing of it does not attract tax, as any appreciation in value remains untaxed until the asset is sold, exchanged, or otherwise disposed of.
Additionally, transferring digital assets between wallets owned by the same individual, where there is no change in beneficial ownership, does not constitute a taxable event. However, the NRS explicitly noted that this exemption does not extend to transfers involving companies, partnerships, trusts, or other corporate entities.
A central provision of the guidelines mandates that every individual or entity involved in virtual asset activities must register for tax purposes and secure a Tax Identification Number (Tax ID) before operating.
In accordance with Section 8 of the Nigeria Tax Administration Act, VASPs and P2P escrow operators must make a valid Tax ID a mandatory prerequisite for onboarding customers. Operators are additionally required to deduct applicable withholding taxes, collect Value Added Tax (VAT) and stamp duties where relevant, remit proceeds within statutory deadlines, file periodic tax returns, and maintain comprehensive transaction records.
The NRS has outlined severe penalties for non-compliance. Defaulting VASPs and P2P marketplace operators face a substantial fine of N10 million for the first month of non-compliance, followed by an additional N1 million for every subsequent month the breach remains unresolved.
These guidelines were developed in alignment with the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025, to ensure clarity and consistency in regulating the rapidly expanding digital asset ecosystem. The move follows the recent signing of the Presidential Executive Order on Virtual Assets Coordination, 2026, by President Bola Tinubu, which established a Virtual Asset Council chaired by the Central Bank of Nigeria (CBN), with the NRS and the Securities and Exchange Commission (SEC) serving as vice-chairpersons.
