Nigeria: Taxation of institutions offering non-interest financial products and services in Nigeria
Regulations provide tax and regulatory framework for the operation of non-interest financial instruments
Taxation of institutions
The Federal Inland Revenue Service (FIRS) published regulations that provide a framework for the taxation of financial institutions offering non-interest financial products and services in Nigeria. The Non-Interest Finance (Taxation) Regulations 2022 were effective as of 1 April 2022.
The Central Bank of Nigeria in June 2022 issued revised guidelines for the operation of non-financial instruments to provide a uniform set of rules for authorised institutions to access non-interest financial instruments.
Therefore, the regulations provide tax and regulatory framework for the operation of non-interest financial instruments offered by the Central Bank of Nigeria for authorised institutions operating under the principles of Islamic Commercial Jurisprudence for equal treatment of both conventional and non-interest financial services transactions in Nigeria.
The regulations are divided into seven parts and address 12 different non-interest financial instruments provided by authorised institutions and their tax implications.
Read a November 2022 report [PDF 4.3 MB] prepared by the KPMG member firm in Nigeria
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