CENTER FOR TREATIES OF NIGERIA
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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 other countries. 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**
Country | Status | Date of Signature | Date of Entry into Force | Text (Access) | |
1. | Kenya | September 6, 2013. | |||
2. | Mauritius | August 10, 2012. | |||
3. | South Africa | Comprehensive | 29th April, 2000 | 5th July, 2008 [1st January, 2009] (Effective Date) |
NIGERIA’S INTERNATIONAL INVESTMENT AGREEMENTS WITH SOUTH AFRICA
Title of Instruments | Date of Signature | Effective Date [In South Africa) |
Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital Gains. | 24-08- 2016 | 2008-07-05 |
Agreement for the Reciprocal Promotion and Protection of Investments. | 2005-07-27 | |
Agreement on Co-operation in the Fields of Mining, Geology, Exploration and Beneficiation of Minerals and Energy. | 2005-07-27 | |
Agreement on Educational Co-operation | 2000-04-29 | |
Agreement on the Establishment of a Bi-National Commission of Cooperation | 2000-04-29 | 2005-07-27 |
Trade Agreement. | 2000-04-29 | 2005-07-27 |
Agreement on Co-operation in the Fields of Arts and Culture. | 2001-03-14 | 2005-07-27 |
Agreement on Institutional Co-operation in the Field of Agriculture. | 2001-03-14 | 2001-03-14 |
Agreement on Scientific and Technological Co-operation | 2001-03-14 | 2005-07-27 |
Agreement on Immigration matters | 2002-03-28 | |
Extradition Treaty between the Government of the Federal Republic of Nigeria and the Government of the Republic of South Africa | 2002-03-28 | 2005-01-06 (Ratification date in Nigeria) |
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 |
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
No. | Partners | Status | Date of signature | Date of entry into force | Text (Access) |
1 | Algeria | Signed (not in force) | 14/01/2002 | Full text: fr | |
2. | Argentina | ||||
3 | Austria | Signed (not in force) | 08/04/2013 | Full text: en | |
4 | Bulgaria | Signed (not in force) | 21/12/1998 | ||
5 | Canada | Signed (not in force) | 06/05/2014 | Full text: en | |
6 | China | Terminated | 12/05/1997 | ||
7 | China | In force | 27/08/2001 | 18/02/2010 | Full text: en |
8 | Egypt | Signed (not in force) | 20/06/2000 | Full text: en | |
9 | Ethiopia | Signed (not in force) | 19/01/2004 | ||
10 | Finland | In force | 22/06/2005 | 20/03/2007 | Full text: en |
11 | France | In force | 27/02/1990 | 19/08/1991 | Full text: fr |
12 | Germany | In force | 28/03/2000 | 20/09/2007 | Full text: en |
13 | Italy | In force | 27/09/2000 | 22/08/2005 | Full text: en | it |
14 | Jamaica | Signed (not in force) | 05/08/2002 | ||
15 | Korea, Republic of | In force | 27/03/1998 | 01/02/1999 | Full text: en |
16 | Kuwait | Signed (not in force) | 23/03/2011 | ||
17 | Morocco | Signed (not in force) | 03/12/2016 | Full text: en | |
18 | Netherlands | In force | 02/11/1992 | 01/02/1994 | Full text: en |
19 | Romania | In force | 18/12/1998 | 03/06/2005 | Full text: en |
20 | Russian Federation | Signed (not in force) | 24/06/2009 | Full text: ru | |
21 | Serbia | In force | 01/06/2002 | 07/02/2003 | Full text: sr |
22 | Singapore | Signed (not in force) | 04/11/2016 | Full text: en | |
23 | South Africa | In force | 09/04/2000 | 27/07/2005 | Full text: en |
24 | Spain | In force | 09/07/2002 | 19/01/2006 | Full text: en |
25 | Sweden | In force | 18/04/2002 | 01/12/2006 | |
26 | Switzerland | In force | 30/11/2000 | 01/04/2003 | Full text: fr |
27 | Taiwan Province of China | In force | 07/04/1994 | 07/04/1994 | |
28 | Turkey | Signed (not in force) | 02/02/2011 | Full text: en | |
29 | Turkey | Signed (not in force) | 08/10/1996 | Full text: en | |
30 | Uganda | Signed (not in force) | 15/01/2003 | ||
31 | United Arab Emirates | Signed (not in force) | 18/01/2016 | ||
32 | United Kingdom | In force | 11/12/1990 | 11/12/1990 | Full text: en |
33. | United States of America | In force | April 23, 2013 |
NIGERIA AND INTERNATIONAL CONVENTIONS/PROTOCOLS (MULTILATERALS) RELATING DIRECTLY OR INDIRECTLY TO INVESTMENTS
NIGERIA AND AFRICAN CONVENTIONS/PROTOCOLS (MULTILATERALS) RELATING DIRECTLY OR INDIRECTLY TO INVESTMENTS
INTERNATIONAL TAX BODIES
International Tax Dialogue, ITD
International Tax Planning Organisations, ITPO
Commonwealth Association of Tax Administrators
International Tax Planning Association, ITPA
Organisation for Economic Co-operation and Development (OECD)
African Tax Administrators Forum
FIND LAWS OF NIGERIA