Nigeria Releases Virtual Asset Taxation Guidelines; Mining and Staking Income Subject to Tax

ChainCatcher report, according to The Nation Online, the Federal Inland Revenue Service of Nigeria has issued the "Guidelines on Taxation of Virtual Assets," formally bringing blockchain digital assets such as cryptocurrencies, stablecoins, and NFTs under the country’s tax system. Released on July 31, the guidelines provide the first detailed framework for taxing income generated from cryptocurrencies, stablecoins, governance tokens, NFTs, and other virtual assets. The guidelines stipulate that gains from the disposal, exchange, or transfer of virtual assets are subject to taxation under Nigerian tax law, and income derived from blockchain activities such as mining, staking, validation, airdrops, and token rewards must also be taxed. Virtual assets must be valued based on market prices from exchanges recognized by the tax authority. Individuals and businesses are required to maintain complete transaction records, and virtual asset service providers must register for tax purposes and report large or suspicious transactions. The Securities and Exchange Commission continues to regulate securities-related virtual assets, while the tax authority oversees tax administration. The guidelines do not establish a separate cryptocurrency tax rate but apply existing tax laws. These guidelines follow the presidential executive order issued by President Bola Tinubu to establish a coordinated regulatory framework for virtual assets.