Transfer pricing regulations application in Nigeria is becoming more rigorous because of the increase in the availability of data through an ongoing exchange of information between the FIRS and other competent authorities in other jurisdictions.
As an introduction, Transfer Pricing is regulated by the Income Tax (Transfer Pricing) Regulations, 2018 (TP Regulations) made under the Federal Inland Revenue Service (Establishment) Act, 2007. The 2018 Regulations are to be applied in a manner that is consistent with the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2017 (OECD TP Guidelines) and the UN’s Practical Manual on Transfer Pricing for Developing Countries 2017 (UN Manual), as may be supplemented and updated from time to time.
It is expected that this would lead to a rise in transfer pricing audits and possibly a rise in transfer pricing disputes. As ‘A Stitch in Tax, Saves Cash’ – a weekly newsletter on tax matters – resumes, together, let’s do an overview of recent developments on transfer pricing in Nigeria.
Watch the video below:
Overview of Recent Developments on Transfer Pricing In Nigeria
Have any improvement suggestions? Share in the comment box and let’s learn together.
Follow us on Twitter for more update