Nigeria and United Arab Emirates Reach Landmark Agreement to Eliminate Double Taxation
In a recent development, the Federal Executive Council (FEC) has sanctioned an accord aimed at abolishing double taxation between Nigeria and the United Arab Emirates. The agreement also seeks to curb tax evasion and avoidance, thus paving the way for a more favourable business environment.
During President Buhari’s visit to the United Arab Emirates, discussions centred on the vital issue of double taxation, with a focus on attracting foreign direct investment. This significant agreement encompasses a wide range of taxes including personal income tax, company income tax, petroleum profit tax, information technology levy, tertiary education tax, and capital gain tax. In view of the advantageous outcomes for Nigeria, the FEC directed the Attorney-General and Minister of Justice to prepare a bill for ratification by the National Assembly.
Moreover, the Council endorsed the ratification of the Investment Promotion and Protection Agreement (IPPA) between Nigeria and the United Arab Emirates. Emphasising the importance of formalising the IPPA as required by law, the Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, affirmed that this move is a step towards solidifying the pact between the two nations.
Additionally, the FEC approved the invocation of Article 26 of the agreement, granting Nigeria the authority to review and amend certain sections of the IPPA to align with the current 2016 model. This decision facilitates the flexibility to make necessary adjustments to the treaty in the future.
In addressing the rising cost of goods and services, as well as the escalating expenses of doing business in Nigeria, the Minister of Trade highlighted the government’s commitment to fostering a conducive environment for local industries and manufacturers. To this end, President Buhari established the Presidential Council on Industrial Revitalization and the Presidential Council on Fiscal Reform and Tax Policy Review. These councils were mandated to expedite their reports and recommendations to accelerate the impact of the Renewed Hope Agenda.
Comprised of various committees focused on crucial sectors such as consumer credit, trade facilitation, mining, oil and gas, and healthcare, among others, the Presidential Council on Industrial Revitalization is set to play a pivotal role in kickstarting the economy. The government’s swift implementation of policies and initiatives is expected to drive substantial economic growth and contribute to achieving the vision of propelling Nigeria into a $1 trillion economy.
In conclusion, the FEC’s approval of the agreement to eliminate double taxation and the subsequent ratification of the IPPA underscore the government’s dedication to creating an amenable business climate and revitalising the economy. With proactive measures in place and a strategic focus on policy implementation, Nigeria is poised for significant progress and sustained growth.
