[You may order for PDF copies of any of the documents listed below or secure project advisory, research and consultancy support by emailing: info@lawnigeria.com and lawnigeria@gmail.com]
TREATIES OF NIGERIA (INVESTMENT, CUSTOMS AND IMMIGRATION)
HB 243: Treaty to Establish African Economic Community Relating to the Pan-African Parliament (Accession and Jurisdiction) Act (Amendment) Bill, 2015 [+]
HB 444: Avoidance of Double Taxation (Between Federal Republic of Nigeria and Spain), Bill, 2016 [+]
HB 445: Avoidance of Double Taxation (Between Federal Republic of Nigeria and South Korea), Bill, 2016 [+]
HB 443: Avoidance of Double Taxation (Between Federal Republic of Nigeria and Sweden) Bill, 2016 [+]
INVESTMENT TREATY FRAMEWORK OF NIGERIA
To facilitate international investments and trade, Nigeria is a party to several multilateral and bilateral treaties. While some of them deal with investments and trade specifically, others relate to connected to ease of doing business like taxation, etc. Below is a list of Nigeria’s investment treaties.
NIGERIA’S BILATERAL INTERNATIONAL INVESTMENT AGREEMENTS
Framework Programme on Cooperation in Science and Technology
2002-03-28
2002-03-28
Memorandum of Understanding on Bilateral Cooperation in the field of Sport and Recreation.
2002-03-28
Memorandum of Understanding on the Prevention of Counterfeiting of Postage Stamps and Meter Impressions as a means of Postage for International Mail.
2002-03-28
2002-03-28
NIGERIA’S DOUBLE TAX TREATIES (DTTS) WITH OTHER COUNTRIES
Nigeria has concluded Double Tax Treaties, DTTs with several countries. A DTT, to be binding on Nigeria must not only be signed by the appropriate authority, but needs to approved by the Federal Executive Council and then ratified by both chambers of the Nigerian National Assembly. A company resident in a country with no Double Tax Treaty with Nigeria pays a flat With-holding Tax, WHT rate of 10% of the value of any revenue from a dividend, interest, royalties, management or technical fees transaction while their contemporaries from a DTT country pays only rate prescribed in the treaty.
Dividend
Interest
Royalties
Management or Technical fees
Non-Treaty Nation
10
10
10
10
Below is a list of countries Nigeria has concluded DTT with. Some of the DTT, even though signed, are yet to be ratified by the National Assembly and so not fully applicable on the Nigerian side – even though it could be applicable to Nigerian companies in that country where prescribed steps for putting it into force has been concluded and was not made contingent on reciprocal ratification on Nigeria’s part.
S/N
Country
Date/Place of Signing
Date of Entry into Force
Effective Date
1.
Canada
4th August, 1992 in Abuja
16th November, 1999
1st January, 2000
2.
Pakistan
10th October, 1989 in Lagos
7th March, 1990
1st January 1991
3.
Belgium
20th November, 1989 in Brussels
1stJanuary, 1990
1st January, 1991
4.
France
27th February, 1990 in Paris
2nd May 1991
1st January, 1992
5.
Romania
21st July, 1992 in Abuja
18th April, 1993
1st January, 1994
6.
Netherlands
11th December, 1991 in Lagos
9th December, 1992
1st January, 1993
7.
United Kingdom
9th June, 1987 in London
1st January,1988
1st January, 1989
8.
China
15th April, 2005 in Abuja
21st March, 2009
1st January, 2010
9.
South Africa
29th April, 2000 in Cape Town
5th July, 2008
1st January, 2009
10.
Italy
22nd February, 1976 in Lagos
1977
1st January, 1978
11.
Philippines
30th September, 1987 in Manila
18th August 2013
1st January, 2014
12.
Czech Republic
31st August 1989 in Lagos
2nd December, 1990
1st January, 1991
13.
Slovakia
31st August 1989 in Lagos
2nd December, 1990
1st January, 1991
14.
United Arab Emirates
19 January, 2016
NA
NA
15.
Kenya
September 6, 2013.
NA
NA
16.
Mauritius
Nigeria and Mauritius signed a DTA on August 10, 2012.
NA
NA
17.
Poland
12 February, 1999
NA
NA
18.
South Korea
6 November 2006
(Legislative Ratification Pending)
NA
19.
Spain
18 November 2004
NA
NA
20.
Sweden
Signed, November 2004.
[Sweden completed ratification procedures in 2005]
December 12, 2012 (Ratified by Nigeria)
21.
Singapore
November 16, 2016.(Approved by Nigeria’s Federal Executive Council)
Yet to be approved by the National Assembly
NA
22.
Qatar
February 28, 2016 (Approved by Federal Executive Council)
Yet to be approved by the National Assembly
NA
NIGERIA: DOUBLE TAXATION RATE FOR TREATY COUNTRIES
Country-Recipient
WHT (%)
Dividend
Interest
Royalties
Management or Technical fees
Country-Recipient
WHT (%)
Dividend
Interest
Royalties
Management or Technical fees
Belgium
7.5
7.5
7.5
10
Canada
7.5
7.5
7.5
10
China
7.5
7.5
7.5
10
Czech Republic
7.5
7.5
7.5
10
France
7.5
7.5
7.5
10
Netherlands
7.5
7.5
7.5
10
Pakistan
7.5
7.5
7.5
10
Philippines
7.5
7.5
7.5
10
Romania
7.5
7.5
7.5
10
Slovakia
7.5
7.5
7.5
10
South Africa
7.5
7.5
7.5
10
South Korea *
7.5
7.5
7.5
10
Spain *
7.5
7.5
7.5
10
Sweden *
7.5
7.5
7.5
10
United Kingdom
7.5
7.5
7.5
10
Non-treaty Countries
10
10
10
10
Belgium
7.5
7.5
7.5
10
Canada
7.5
7.5
7.5
10
China
7.5
7.5
7.5
10
Czech Republic
7.5
7.5
7.5
10
France
7.5
7.5
7.5
10
Netherlands
7.5
7.5
7.5
10
Pakistan
7.5
7.5
7.5
10
Philippines
7.5
7.5
7.5
10
Romania
7.5
7.5
7.5
10
Slovakia
7.5
7.5
7.5
10
South Africa
7.5
7.5
7.5
10
South Korea *
7.5
7.5
7.5
10
Spain *
7.5
7.5
7.5
10
Sweden *
7.5
7.5
7.5
10
United Kingdom
7.5
7.5
7.5
10
Non-treaty Countries
10
10
10
10
* The tax treaties with South Korea, Spain, and Sweden are still being ratified.
NIGERIAN DOUBLE TAXATION AGREEMENTS, DTA WITH OTHER AFRICAN COUNTRIES**