Understanding Nigeria's Tax Framework for Foreign Investors
Navigating Nigeria's tax system requires careful planning and expert guidance to ensure compliance and optimize tax efficiency.
Corporate Income Tax
Foreign companies operating in Nigeria are subject to corporate income tax at a rate of 30% on taxable profits.
Value Added Tax (VAT)
VAT is charged at 7.5% on most goods and services, with specific exemptions for certain sectors and transactions.
Withholding Tax
Payments to foreign entities are subject to withholding tax, varying by the nature of the payment and applicable tax treaties.
Transfer Pricing
Transactions between related parties must comply with arm's length pricing principles to prevent tax avoidance.