In 2018, Nigeria's Federal Inland Revenue Service (FIRS) underwent a significant revamp of its Transfer Pricing (TP) regulations to adhere to international standards outlined by the OECD and the UN TP Manual.
As part of these changes, taxpayers are now required to create TP documentation, submit annual TP declarations and disclosures, and adhere to timelines to avoid penalties.
Furthermore, the regulations introduce methods for determining the arm’s length nature of transactions and foster a strong sense of responsibility on the taxpayer to demonstrate the selection of comparables and the reliability of the TP method chosen.
Adding to this transformation, FIRS has been empowered to enter into Advance Pricing Agreements (APAs) with taxable individuals, signaling an exciting development aimed at streamlining cross-border transactions.
Are you ready to dive into Nigeria’s commitment to fairness and compliance in international business practices? For a detailed overview of the transfer pricing landscape in the region and other African countries and detailed insights, download the full Grant Thornton Africa Transfer Pricing Landscape Guide 2023/2024.
