The Federal Executive Council (FEC) has approved a new taxation deal with the United Arab Emirates (UAE) aimed at eliminating double taxation between the two countries.
This was disclosed by the Attorney-General of the Federation and Minister of Justice Mr Lateef Fagbemi while briefing State House correspondents at the end of the weekly FEC meeting chaired by President Bola Ahmed Tinubu.
He said FEC has given the go-ahead for the Nigeria-UAE double tax treaty to be forwarded to the National Assembly for ratification.
He said the treaty covers major taxes in Nigeria including personal income tax, company income tax, petroleum profit tax, information technology levy, education tax and capital gains tax.
He said once it is ratified by the National Assembly, the treaty would help strengthen economic ties between Nigeria and the UAE by removing tax barriers for businesses and investors.
The minister said the Tinubu administration is prioritizing reforms to improve the country’s tax policies and make it more attractive for foreign direct investment.
“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 mandating 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 ceased to be an ordinary agreement. But an agreement between two countries. Other countries will follow, but the one that we immediately leverage on is the one between Nigeria and the UAE,” he said.