PwC Nigeria have said Nigeria’s new tax guidelines for virtual assets provide welcome clarity but leave practical and legal uncertainties that could complicate compliance for taxpayers and service providers.
In a tax alert titled “Taxing the intangible: A critical analysis of the NRS guidelines on taxation of virtual assets”, the firm welcomed the Nigeria Revenue Service’s (NRS) first comprehensive administrative framework on virtual assets, published on July 31, 2026 as Information Circular No. 2026/21.
At the same time, PwC identified several gaps that, it warned, require attention from both regulators and market participants.
PwC highlighted a safe-harbour in the guidelines which treats transfers between wallets owned by the same person as non-taxable disposals.
The firm said the carve-out applies only to individuals and excludes companies and partnerships, potentially complicating typical corporate treasury practices that move assets across multiple wallets.
The guidelines require virtual asset prices to be sourced from an “aggregator approved by the Service.” PwC noted there is currently no published list of approved aggregators, creating valuation uncertainty for taxpayers and Virtual Asset Service Providers (VASPs) that must determine values for tax reporting and computation.
Another area of concern is the interaction between a one per cent withholding tax (WHT) on gross disposal proceeds and income tax on net gains. Under the NRS rules, VASPs must withhold one per cent on certain disposals while income tax remains applicable to gains.
PwC said careful reconciliation on annual returns will be necessary to avoid double taxation.
The guidelines place several obligations on VASPs, including withholding tax collection, stamp duty collection, enforcement of Tax Identification Number (TIN) requirements before account activation, returns filing and record-keeping.
The penalty regime features a N10 million fine for the first month of non‑compliance and N1 million for each subsequent month.
The company questioned whether imposing these duties on VASPs is equitable given similar obligations are not explicitly required of bureaux de change and stock exchanges, and whether the NRS has the authority to extend withholding requirements beyond the 2024 Withholding Tax Regulations.
