The Nigerian government has approved the signing of an agreement between Nigeria and the United Arab Emirates (UAE).
The approval is in respect of the elimination of double taxation as regards taxes on income and the prevention of tax evasion.
The approval was given on Wednesday during the first Federal Executive Council (FEC) meeting for the year 2024, presided by President Bola Ahmed Tinubu at the Presidential Villa in Abuja, the nation’s capital.
The Council directed the Attorney General of the Federation, Lateef Fagbemi to work out an executive bill to deal with the issue of double taxation, to help Nigerian industries and encourage the flow of Foreign Direct Investment.
Fagbemi states, “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 to eliminate double taxation with respect to taxes on income, and prevention of tax evasion and 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 the Nigeria and the United Arab Emirates.
“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 Attorney General added.
Fagbemi further made known that FEC also approved the ratification of the agreement between Nigeria and the UAE on the reciprocal promotion and protection of investments.
Trade Agreement With UAE
The Council endorsed that the Investment Promotion and Protection Agreement (IPPA) between Nigeria and the United Arab Emirates be ratified by the National Assembly.
The Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite who disclosed this while briefing Journalists said this is to formalise the pact by the two countries as required by law.
“Council approved the ratification of the Investment Promotion and Protection Agreements (IPPA) between Nigeria and the UAE. With the approval, we can now send the already-signed IPPA to the National Assembly for ratification,” she said.
The Minister said she was directed to invoke a section of the agreement that will enable Nigeria to make amendments to the treaty when needed.
“The council also approved that the Minister for Industrial Trade or Investment should also immediately invoke Article 26 of that agreement, which mandates that we can review and amend some sections of the IPPA to conform with the current IPPA model that we’re using, which is a 2016 model. So that has been approved for ratification and we will immediately proceed to invoke the section that will enable us to review and amend the sections that were not originally viewed to be favorable,” the Minister added.