Seun Adu Profile picture
Aug 28, 2018 12 tweets 7 min read
Breaking:@firsNigeria has published #Nigeria’s revised #TransferPricing Regulations (NTPR). The #NTPR is effective for basis periods commencing after 12 March 2018 and incorporates #BEPS outcomes and suggestions from @ATAFtax.
The #NTPR includes significant penalties for non-compliance (a) failure to file TP declaration = ₦10million + ₦10k/month (b) failure to file updated TP declaration/notification = ₦25k/day.
(c) failure to file TP disclosure = ₦10million or 1% of the value of related party transactions (RPT) not disclosed + ₦10,000/day (d) filing incorrect disclosure = ₦10million or 1% of the value of RPT incorrectly disclosed #NTPR.
(e) failure to file TP documentation upon request = ₦10million or 1% of the total value of RPTs + ₦10k/day (f) failure to furnish information upon request = 1% of the value of each RPT for which information relates + ₦10k/day #NTPR.
#NTPR follows @ATAFtax suggested approach and introduces a cap of 5% of EBITDA on tax deductibility of royalty payments. This is not consistent with the arm’s length principle. It also questionable if such a change can be made via Regulations.
#NTPR requires taxpayers to prepare #BEPS Master File and Local File as part of TP doc. Also, exempts taxpayers with total RPT values less than ₦300million from preparing TP doc. However, they must submit the TP doc within 90 days’ notice from @firsNigeria.
#NTPR suggests @firsNigeria will not automatically accept prices accepted for @CustomsNG customs valuation purposes. This could expose taxpayers to double taxation.
The #NTPR gives effect to the anti-avoidance provisions in CITA, PITA, PPTA, CGTA and VATA. This suggests @firsNigeria may be signaling its intention to look into the VAT impact of TP adjustments. Does VATA have arm’s length provisions?
#NTPR expands definition of persons covered under the regulations (connected persons) to include persons considered related or associated in VATA, and @OECDtax and @UN TP guidelines.
@firsNigeria will publish specific guidelines on safe harbors from time-to-time #NTPR.
Head of @firsNigeria TP unit will now have the power to make decision on whether a case/assessment should be referred to the Decision Review Panel. #NTPR. Taxpayer will no longer have this right.
#NTPR introduces provision similar to #BEPS provision on capital-rich, low-function companies.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Seun Adu

Seun Adu Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(