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TIPS TO HELP SMALL BUSINESS OWNERS IN 2018.

There are twelve months in the year, keeping your business in good shape is very important. A good place to start is to reflect on the past year, and get a clear understanding of what success looks like in 2018. Below are few tips ... Read More

SAGE ONE – THE SMALL BUSINESS PAYROLL SOFTWARE FOR NIGERIA START-UPS AND SMALL BUSINESSES

Sage One is an online accounting and payroll solution that supports entrepreneurs and small businesses. It is designed to keep your business on track and prevent errors, while giving you access to your accounts from anywhere, and at anytime. Sage One ... Read More

KEY ISSUES AND CHALLENGES OF NIGERIAN TAXATION SYSTEM

  Tax being a mandatory financial charge or some other type of levy imposed upon a taxpayer (an individual or other legal entity) by the government in order to generate revenue. Aside being a means to generate revenue is enforced by federal, state ... Read More

Nigeria’s economy still attractive for foreign investment

Nigeria’s economy still attractive for foreign investment  Nigerian economic climate is still attractive for foreign investments, despite its present challenges. Nigeria is the largest economy in Africa, with Gross Domestic Product (GDP) of 549.6 billion dollars, is still attracting foreign investments especially from private equity funds. Amidst the challenging economy, Nigeria’s foreign direct investment ... Read More

12 common risks SMEs ignore until it’s too late

  Business owners are brave. They’ve created a product or service they believe meets a need or solves a problem and then pour their heart and soul into turning that into a successful business. Smart business owners plan. Even smarter ones do business risk ... Read More

REASONS WHY COMPANIES OUTSOURCE THEIR PAYROLL

For many businesses, outsourcing of payroll services is a valuable alternative to in-house processing.  When chosen correctly, payroll services provide a less expensive and simpler means of paying employees, tax filing, and performing a host of other payroll related duties. However, choosing ... Read More

TAXATION OF SPECIAL BUSINESSES

    Special Business Tax (SBT) is another kind of indirect tax introduced in 1992 to replace Business Tax. Certain businesses that are excluded from VAT will instead be subject to SBT. Special Businesses are so classified because of the peculiar nature of ... Read More

REASONS WHY COMPANIES OUTSOURCE THEIR PAYROLL

For many businesses, outsourcing of payroll services is a valuable alternative to in-house processing.  When chosen correctly, payroll services provide a less expensive and simpler means of paying employees, tax filing, and performing a host of other payroll related duties. However, ... Read More

DOES YOUR BUSINESS NEED A BOOKKEEPER?

Bookkeeping is an integral part of business management. Bookkeeping is the process of recording and maintaining financial transactions for your business, and it’s a great way to generate a detailed financial overview for your business whenever you need it. The discipline ... Read More

VALUE ADDED TAX ADMINISTRATION IN NIGERIA

    Value Added Tax (VAT) was introduced by the Federal Government of Nigeria and is provided for by the Value Added Tax Decree 102 of 1993 which became effective in 1994 which requires manufacturers, wholesalers, importers and suppliers of VATable goods ... Read More

TIPS TO HELP SMALL BUSINESS OWNERS IN 2018.

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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