The Federal Government has approved the signing of an agreement between Nigeria and the United Arab Emirates (UAE) to eliminate double taxation as regards taxes on income and the prevention of tax evasion.
This was one of the key decisions reached at the first Federal Executive Council (FEC) meeting of 2024, presided by President Bola Tinubu, at the Presidential Villa in Abuja, on Wednesday.
The Council asked the Attorney General of the Federation, Lateef Fagbemi to work out an executive bill to address the issue of double taxation, to help Nigerian industries and encourage the flow of Foreign Direct Investment (FDI).
“You’ll recall that a while ago, the president was in the United Arab Emirates. 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 the prevention of tax evasion and avoid avoidance.
“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 Nigeria and the United Arab Emirates.
“The Council noted that the agreement between both countries, that is, between Nigeria and the United Arab Emirates includes 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 mandating authorising the Attorney-General and Minister of Justice to prepare a bill along this line to take to the National Assembly for ratification,” Fagbemi stated.
He further disclosed that FEC also approved the ratification of the agreement between Nigeria and the UAE on the reciprocal promotion and protection of investments.