Uk Nigeria Double Tax AgreementRomuald Franck - MSc, Scrum Master
The United Kingdom and Nigeria recently reached a double tax agreement (DTA) that aims to promote economic cooperation and investment between the two countries. This move is seen as a positive step towards boosting economic growth and trade relations between the UK and Nigeria.
The double tax agreement is a bilateral agreement between two countries to prevent double taxation of income arising in one country and paid to residents of another country. This means that individuals and businesses operating in the UK and Nigeria will no longer face the burden of having to pay taxes twice on the same income.
Under the agreement, companies operating in Nigeria and paying taxes in the UK will receive a credit for the Nigerian tax they have paid. Similarly, individuals and companies based in the UK who are earning income in Nigeria will also receive a credit for the Nigerian tax paid. This will eliminate the double taxation of income, thereby reducing the cost of doing business and promoting investment in both countries.
The double tax agreement is expected to boost trade and investment flows between the UK and Nigeria, as businesses will have more incentives to invest and operate in both countries. Moreover, it is expected to provide a level playing field for businesses, as they will be subject to the same tax rules and regulations in both countries.
The double tax agreement also provides a mechanism for resolving disputes between the two countries regarding the interpretation and application of the agreement. This will help to provide certainty and predictability for businesses operating in the two countries.
Overall, the UK-Nigeria double tax agreement is a positive step towards strengthening economic cooperation and investment between the two countries. It is expected to create new opportunities for businesses and investors, while also enhancing the competitiveness of both economies. As such, it should be welcomed by all stakeholders in both countries.