FG to Tax Cryptos, Other Digital Assets

FG to Tax Cryptos, Other Digital Assets | Daily Report Nigeria

Finance minister, Zainab Ahmed has said that the 2022 finance bill contains a provision to tax cryptocurrencies and other digital assets.

Ahmed updated the National Economic Council on the key aspects of the 2022 finance bill at a virtual emergency meeting on Thursday.

This was according to a statement by Laolu Akande, Vice President Yemi Osinbajo’s media aide.

The minister stated that the proposed bill explained how cryptocurrencies and other digital assets would be taxed in keeping with the government’s strategic goal of increasing cross-border and international taxation of expanding e-commerce with emerging countries.

The statement read:

For instance, under the Tax Equity pillar, all sectors of the economy would be brought into the tax net including Capital Gains Tax from digital assets, cable undertakings, lottery and gaming business.

“Under the pillar of Tax Incentives’ Reforms, there would be new deductions for Research and Development, and Investment Tax Credits; Reconstruction Investment Allowance; Rural Investment Allowance; Incomes in Convertible Currencies to be exempt, among others.”

She explained that the proposed measure would be based on five essential policy pillars (climate change, tax equity, job creation/economic growth, reform of tax incentives, and revenue generation/tax administration).

She stated that the measure aimed to update pertinent tax, excise, and duty statutes following the federal government’s revisions to its macroeconomic policies.

The finance minister further revealed that the measure would reform and add to the existing provisions of particular laws on the federation’s public financial management.

Other elements of the finance bill include chargeable assets, the exclusion of losses, and the replacement of corporate assets.

This follows despite the placing of restrictions on cryptocurrency transactions in Nigeria.

In 2021, the Central Bank of Nigeria (CBN) ordered banks to close the accounts of people and organisations using their systems to deal in cryptocurrencies.

The bank regulators warned people to avoid investing in cryptocurrencies, claiming such tradings are frequently used to finance nefarious activities.

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