Nigeria-UAE tax deal: Tinubu orders AGF to prepare bill for National Assembly ratification

The Attorney General and Minister of Justice, Lateef Fagbemi says the Federal Government has agreed to a new taxation deal with the United Arab Emirates that aims to eliminate double taxation between the two countries.

He said this on Wednesday while briefing State House correspondents after the Federal Executive Council meeting presided over by President Bola Tinubu at the Presidential Villa.

He said that the Nigeria-UAE double tax treaty has been approved by the FEC and would be sent to the National Assembly for confirmation.

According to him, the treaty covers the main taxes in Nigeria, such as the capital gains tax, education tax, petroleum profit tax, information technology levy, personal income tax, and corporation income tax.

He emphasized that the Tinubu administration is focusing on introducing reforms that would enhance Nigeria’s tax policies and increase the country’s appeal to foreign direct investors.

“One of the major issues discussed was the issue of double taxation encouraging foreign direct investment. This time around, it’s about the relationship between the Nigeria the United Arab Emirates.

“You’ll recall that a while ago, the president was in the United Arab Emirates, and one of the matters that came up for discussion and negotiation is the agreement for the elimination of double taxation with respect to taxes on income, and prevention of tax evasion and avoid avoidance.⁣

“The Council noted that the agreement between both countries, that is, between Nigeria and the United Arab Emirates include personal income tax, company income tax, petroleum profit tax, information technology levy, tertiary education tax and capital gain tax.

“Because of the effect of this cooperation or the benefits that will accrue to Nigeria, the council agreed and directed that the agreement that had been signed already should be taken further by authorising the Attorney-General and Minister of Justice to prepare a Bill along this line to take to the National Assembly for ratification. ⁣

“The effect of this is that it does cease to be an ordinary agreement, but an agreement between two countries. Other countries will follow, but the one that we will immediately leverage on is the one between Nigeria and the UAE.

“Apart from this one, he has also decided that going forward, we should also have a very solid national policy on taxation that will drive or attract foreign investments, so on the part of FDI, this was what was discussed and decided at the Federal Executive Council,” he said.