Nigeria sets 1% crypto tax withholding for exchanges

cryptonews

Aug 04

Nigeria’s revenue authority has issued detailed crypto tax rules requiring exchanges and P2P marketplace operators to collect, report and remit taxes arising from virtual asset transactions. Summary...

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height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNigeria sets 1% crypto tax withholding for exchanges\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-08-04 16:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://crypto.news/nigeria-sets-1-crypto-tax-withholding-for-exchanges/><strong>cryptonews</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nigeria’s revenue authority has issued detailed crypto tax rules requiring exchanges and P2P marketplace operators to collect, report and remit taxes arising from virtual asset transactions.\n\n\nSummary...</p>\n\n<a href=\"https://crypto.news/nigeria-sets-1-crypto-tax-withholding-for-exchanges/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LFGY","symbol_name":"YieldMax Crypto Industry and Tech Portfolio Option Income ETF","start_time":0,"source_url":"https://crypto.news/nigeria-sets-1-crypto-tax-withholding-for-exchanges/","article_id":"2656536245","we_media_id":null,"thumbnails":[],"rights":{"source":"crypto_news_highlight","url":"https://crypto.news/nigeria-sets-1-crypto-tax-withholding-for-exchanges/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2656536245","pubTimestamp":1785832024,"columns":[],"sourceInfo":{"source_id":"crypto_news_highlight","name":"Crypto News"},"weMediaInfo":null,"summary":"Nigeria’s revenue authority has issued detailed crypto tax rules requiring exchanges and P2P marketplace operators to collect, report and remit taxes arising from virtual asset transactions.Platforms must withhold 1% from taxable crypto disposals, while stablecoin sales remain exempt under guidelines.Staking, mining, airdrops and DeFi rewards may face 10% withholding when classified as taxable income.Token to fiat and fiat to token transfers attract 1.5% stamp duty collected by platforms and marketplaces under guidelines.Some withheld taxes require remittance in originating tokens, while VAT follows the transaction’s payment currency.Nigeria’s framework places exchanges and P2P operators at the center of reporting and enforcement duties.The Nigeria Revenue Service published the Guidelines on Taxation of Virtual Assets on July 31. The agency announced the framework publicly on Aug. 3, saying it explains how the Nigeria Tax Act 2025 and Nigeria Tax Administration Act 2025 apply to digita","collect":0,"end_time":0,"defaultTopTitle":"crypto.news","property":[],"viewcount":null,"language":"en","relate_stocks":{"LFGY":"YieldMax Crypto Industry and Tech Portfolio Option Income ETF","BKCH":"AdvisorShares Sabretooth ETF","DAPP":"VanEck Digital Transformation ETF","STCE":"Schwab Crypto Thematic ETF","BITQ":"Bitwise Crypto Industry Innovators ETF","BITW":"Bitwise 10 Crypto Index ETF","NCIQ":"HASHDEX NASDAQ CRYPTO INDEX US ETF","CRPT":"First Trust SkyBridge Crypto Industry and Digital Economy ETF","TEKX":"SPDR Galaxy Transformative Tech Accelerators ETF","GDLC":"Grayscale CoinDesk Crypto 5 ETF","DIME":"CoinShares Altcoins ETF"},"translate_title":"尼日利亚对交易所征收 1% 的加密货币预扣税","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DIME":1.5,"STCE":1.5,"BITW":1.5,"CRPT":1.5,"BITQ":1.5,"BKCH":1.5,"DAPP":1.5,"NCIQ":1.5,"LFGY":1.5,"GDLC":1.5,"TEKX":1.5},"content_text":"Nigeria’s revenue authority has issued detailed crypto tax rules requiring exchanges and P2P marketplace operators to collect, report and remit taxes arising from virtual asset transactions.\n\n\nSummary\n\n\n\nPlatforms must withhold 1% from taxable crypto disposals, while stablecoin sales remain exempt under guidelines.\nStaking, mining, airdrops and DeFi rewards may face 10% withholding when classified as taxable income.\nToken to fiat and fiat to token transfers attract 1.5% stamp duty collected by platforms and marketplaces under guidelines.\nSome withheld taxes require remittance in originating tokens, while VAT follows the transaction’s payment currency.\nNigeria’s framework places exchanges and P2P operators at the center of reporting and enforcement duties.\n\n\n\nThe Nigeria Revenue Service published the Guidelines on Taxation of Virtual Assets on July 31. The agency announced the framework publicly on Aug. 3, saying it explains how the Nigeria Tax Act 2025 and Nigeria Tax Administration Act 2025 apply to digital assets.\nOne of the most unusual requirements concerns the form of payment. Income tax deducted at source and stamp duty must be remitted to the NRS in the token used for the underlying transaction. VAT must instead be paid in the currency used for payment, according to the guidelines.\n\nProfits from cryptocurrency and other virtual asset transactions are now taxable under Nigeria’s new NRS guidelines. pic.twitter.com/90xIe6szZf— Naija (@Naija_PR) August 4, 2026\n\nNigeria crypto tax rules shift collection to platforms\nPlatforms must withhold 1% of the proceeds from taxable disposals of cryptocurrencies, security tokens and applicable nonfungible tokens. The deduction serves as an advance payment toward the taxpayer’s final income tax bill rather than a separate final tax.\nSales involving stablecoins are exempt from that 1% withholding requirement. However, the exemption does not necessarily remove every possible tax obligation arising from stablecoin activity. The final treatment depends on the transaction, the taxpayer and whether income or a taxable gain arose.\nStaking rewards, mining income, airdrops and returns from decentralized finance may attract 10% withholding when treated as taxable income. Platforms and P2P operators must make the deduction when they process covered payments.\nThe rules also apply a 1.5% stamp duty to transfers from fiat currency into tokens and from tokens into fiat currency. The platform or marketplace handling the transaction must collect the duty from the virtual asset credited to the recipient.\nTax liability depends on how the assets are used\nNigeria no longer treats all crypto profits through the former standalone 10% capital gains model introduced by the Finance Act 2023. Under the 2025 reforms, gains from digital asset disposals form part of taxable income and follow the rates applicable to the taxpayer.\nCompanies other than qualifying small companies generally face a 30% income tax rate on taxable profits and gains. A small company is broadly defined as having annual turnover of no more than ₦100 million and fixed assets not exceeding ₦250 million. Individuals face progressive personal income tax rates.\nTaxable events include selling, exchanging or transferring an asset when beneficial ownership changes. Crypto payments for goods or services must be valued at their market price on the transaction date and included in taxable income. The NRS requires valuations from recognized trading platforms.\nSimply holding Bitcoin or another token is not taxable. Transfers between wallets controlled by the same owner also fall outside the tax net when beneficial ownership remains unchanged. Other exclusions include minting an NFT before its sale, receiving a crypto backed loan and locking tokens for staking before rewards arise.\nExchanges must connect transactions with tax identities\nVirtual asset service providers must register for tax purposes and maintain records showing acquisition dates, costs, disposal values, fees and counterparties. They must also file information allowing the NRS to identify taxable users and transactions.\nAs crypto.news previously reported, the Nigeria Tax Administration Act requires registered platforms to connect customer activity with Tax Identification Numbers and, where applicable, National Identification Numbers.\nReports can include customers’ names, addresses, telephone numbers, email addresses and transaction values. Platforms must also report large or suspicious activity and retain identification and transaction records for at least seven years.\nThe framework explicitly includes P2P marketplace operators. This closes a collection gap that could arise when buyers and sellers trade through a matching platform rather than a conventional centralized exchange.\nNigeria’s broader crypto framework is still developing\nPresident Bola Tinubu directed the NRS to issue the tax policy through a July 18 executive order. The order created a Virtual Asset Council chaired by the Central Bank of Nigeria, with the NRS and Securities and Exchange Commission serving as vice chairs.\nAs crypto.news reported in related coverage, the council coordinates existing regulators rather than replacing them. The SEC retains authority over securities related assets, while the central bank oversees payment, settlement and custody services involving nonsecurity assets.\nNigeria’s Senate is separately considering the Virtual Asset Service Providers Regulation Bill 2026. The measure passed its second reading in June and moved to the Senate Committee on Capital Market. It would establish licensing and compliance requirements for exchanges and other digital asset businesses if enacted.\nThe immediate next step falls on exchanges and P2P operators. They must adjust transaction systems, customer records and remittance processes to meet the NRS requirements. Further guidance may be needed on token custody, conversion procedures and how the agency will receive and account for taxes paid in multiple digital assets.\n\n\n\n\n\n                Read more:\n            \n\n                Bitcoin price nears $64K despite Strategy sale, Coldcard","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}