NIGERIA’S TAXATION AND RELATED TREATIES

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TREATIES RATIFIED BY NATIONAL ASSEMBLY OF NIGERIA

DOUBLE TAX TREATIES (DTTS)

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 the 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	4^th August, 1992 in Abuja	16^th November, 1999	1^st January, 2000
2.	Pakistan	10^th October, 1989 in Lagos	7^th March, 1990	1^st January 1991
3.	Belgium	20^th November, 1989 in Brussels	1^stJanuary, 1990	1^st January, 1991
4.	France	27^th February, 1990 in Paris	2^nd May 1991	1^st January, 1992
5.	Romania	21^st July, 1992 in Abuja	18^th April, 1993	1^st January, 1994
6.	Netherlands	11^th December, 1991 in Lagos	9^th December, 1992	1^st January, 1993
7.	United Kingdom	9^th June, 1987 in London	1^st January,1988	1^st January, 1989
8.	China	15^th April, 2005 in Abuja	21^st March, 2009	1^st January, 2010
9.	South Africa	29^th April, 2000 in Cape Town	5^th July, 2008	1^st January, 2009
10.	Italy	22^nd February, 1976 in Lagos	1977	1^st January, 1978
11.	Philippines	30^th September, 1987 in Manila	18^th August 2013	1^st January, 2014
12.	Czech Republic	31^st August 1989 in Lagos	2^nd December, 1990	1^st January, 1991
13.	Slovakia	31^st August 1989 in Lagos	2^nd December, 1990	1^st 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
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.

TREATIES – 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	29^th April, 2000	5^th July, 2008 [1^st January, 2009] (Effective Date)