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Have Respect for Risk

  Ensuring respect for risk Most executives understand the need for controls that alert them to trends and behaviors they should monitor, the better to mobilize in response to an evolving risk situation. And while managers are unlikely to approve of skirting the ... Read More

Even Small Businesses Need An Accounting Software

Why Your Business Needs An Accounting Software Research has shown that over 98 percent of Nigeria’s Micro and small scale businesses do not have formal or what we may call a standard book-keeping culture. While most of ... Read More

Solving Your Business Risks

    Businesses face a myriad of challenges that leave them vulnerable to many forms of risk, including regulatory, reputational and litigation, among others. Evolving legal and ethical obligations pose constant challenges to a business and often in-house counsel are on the front ... Read More

Demystifying the International Financial Reporting Standards.

IFRS Immersion Course For Accountants, Auditors & Finance Personnel This 3-Day IFRS immersion training has been designed to teach in-depth knowledge about IFRS with practical application examples.The training sessions will be led by subject-matter professionals with deep IFRS and Nigeria Statement of Accounting Standards experience. Attendance at this programme will provide the participants opportunity to discuss practical issues on application of IFRS and to ensure effective compliance with IFRS. Certificates will be awarded to all ... Read More

PML ADVISORY PARTNERS WITH E-TRENDS TECHNOLOGY INDIA

   Indian based accounting solution company, E-trends Technologies India has  signed a partnership deal with PML  advisory limited to provide solution to the  mounting challenges  of managing , controlling and reporting internal  audit  system that are confronting emerging and ... Read More

Your SME Needs a Financial Plan

    A financial plan is a forecast of future performance for a business, usually prepared using spreadsheet software. Small businesses can benefit greatly from taking the time to do a financial plan at least annually. The plan helps a small ... Read More

Seven Steps To An Effective Risk Based Audit

  An important in the internal auditor's toolbox, risk-based auditing effectively serves the three primary roles of internal auditing — to provide feedback on the adequacy of internal control, to provide a source of information for monitoring risk, and to provide identification and communication ... Read More

Your Company Needs A Better Risk Management Approach

  The world has learned the hard way over the past year that most companies have done a bad job of managing risk. And not only banks and investment firms. Accenture’s Global Risk Management Study  found that executives at business enterprises across a wide range of industries believe overwhelmingly that they ... Read More

External Auditors: An Ally or Opponent?

  External Auditors: An Ally or Opponent? Unfortunately, the finance departments of many companies mistakenly believe that having an external audit annually is part of their internal control structure they can rely on to ensure their financial statements are accurate and their internal controls are sound.   While the objective of an external audit ... Read More

What are the benefits of having professional financial advice?

Professional financial advisors have years of training, tools, and experience working with many different clients and situations. Because of their broad experience, professional advisors can quickly assess your needs and offer advice that reflects the best practices of the financial industry and is appropriate for your particular needs. In addition, and ... Read More

Have Respect for Risk

The Tax Act 2025 provides a framework for the taxation of transactions involving virtual assets. As digital and blockchain-based assets continue to form part of modern economic activities, the Act recognises various transactions involving virtual assets as potentially taxable and establishes a basis for determining their value for tax purposes.

Taxable Virtual Asset Transactions

Under the provisions of the Tax Act 2025, taxable transactions involving virtual assets extend beyond the conventional sale of digital assets. The scope includes various activities through which individuals or businesses may derive income, profit, compensation, or other economic benefits.

Taxable virtual asset transactions include:
• The sale, exchange, or transfer of virtual assets, where a virtual asset is disposed of or exchanged for another asset or consideration.
• Mining or staking activities that generate income, recognising income derived from participation in blockchain networks or related activities.
• Airdrops, bounties, and rewards, including virtual assets received as compensation, incentives, or other forms of economic benefit.
• Other transactions or activities relating to virtual assets, where such activities generate income or otherwise fall within the scope of taxable transactions under the applicable provisions.

The broad definition of taxable transactions demonstrates the intention to ensure that income and economic benefits arising from different forms of virtual asset activities are appropriately considered for tax purposes.

Valuation of Virtual Assets

The Tax Act 2025 also establishes a basis for determining the value of virtual assets for tax purposes. The value of a virtual asset is to be determined based on the prevailing market price at the time the transaction takes place, using a recognised virtual asset exchange platform approved or recognised by the relevant tax authority.

This valuation approach provides a consistent basis for determining the monetary value attributable to virtual asset transactions. It is particularly important for calculating the appropriate tax liability arising from the sale, exchange, transfer, or receipt of virtual assets.

Conclusion

The provisions of the Tax Act 2025 on virtual assets represent an effort to bring emerging digital economic activities within the formal tax framework. By identifying a wide range of taxable virtual asset transactions and providing a method for their valuation, the Act seeks to promote tax compliance, transparency, and consistency in the treatment of income derived from virtual asset activities.

Overall, the provisions emphasise that economic benefits arising from virtual asset transactions—including sales, exchanges, transfers, mining, staking, airdrops, bounties, and rewards—may have tax implications. The valuation rules further provide a basis for determining the value of such assets at the time of the relevant transaction for tax assessment purposes.

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