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15 Insights on Transfer Pricing in Nigeria

What is Transfer Pricing?

Transfer Pricing (TP) is described as the method by which connected organisations or related parties price goods, assets, services, intellectual properties, loans, guarantees and other commercial transactions between them.

The prices paid for goods or services delivered or received have a direct impact on the profits of the seller and buyer and by implication, on tax. Unlike transactions between independent parties, related parties tend to place less emphasis on ensuring that the price charged for a transaction reflects market circumstances.

As a Freelancer, Should I Pay Tax?

It used to be news, but it is becoming less of a catchy headline now that unemployment rate is high in Nigeria. That it has, in fact, climbed upwards for nine consecutive quarters to hover at about 14.2% in the last quarter of 20161 and then, like the eagle, surged higher to crest at an increased 18.80% of the total population, by the third quarter of 2017.

The TaxaideR Newsletter Vol 1.8 (August 2019)

A few weeks ago, precisely on 31^st July 2019, Taxaide Technologies Limited (Taxtech) and about 10 other firms were issued the Data Protection Compliance Organisation (DPCO) license. If you’ve been reading our recent bulletins on #TaxThursday, you would notice our emphasis on the Ws of DPCO; basically, discussing the what, who, why, when, how etc. If your company houses any data, internally or externally-related (and I can bet this implies virtually every organisation today), you need our services as a DPCO-licensed firm to protect and secure your data.

Transferring Intellectual Property to Tax Havens

Intellectual property is not just an important asset for the running of companies, but it actually can help in catapulting the profits of companies. Multinational corporations use intellectual property to avoid taxes on massive scale, by transferring their intellectual property to tax havens for artificially low prices.

Forget Tax, Data is the new Oil

“Tax is the new oil”

I’m not exactly a fan of this phrase. Actually, I’m not a fan of it at all. I first heard it at a tax conference I attended in September 2017. I could understand the rationale behind the phrase – the glory years of 2011-2013 and triple digit oil prices were long gone and as a nation, we had no idea how else we could stay afloat. Deep introspection showed us how much we were bleeding ourselves by ignoring entities who made a killing and failed to give Caesar what was due to him.

A TAXTECH ASSOCIATE’S VIEW ON DATA PROTECTION COMPLIANCE ORGANISATION (DPCO)

1. Why are DPCO’s necessary to Nigerian Firms?

A 2012 study of by the National Cyber Security Alliance found that 60% of small businesses fold within 6 months of a data breach. It is undeniable that Nigerian firms are making radical advancements and putting themselves on the global map in their respective industries, but this could be the downfall should they fail to implement the right security protocols for their data management systems and procedures.

The Economy of the North-West: Kebbi State.

In Nigeria, when you hear ‘the North’, the first thing you think of are the Hausas. The Former Military Head of State, General Ibrahim Babangida created a state out of the “old Sokoto” known as “Kebbi state” in the North-West geopolitical region, that was and is predominantly agricultural. Kebbi State is divided into four emirate councils (Gawande, Argungu, Yauri and Zuru) and twenty-one local government areas.

The Economy of the South-South: Bayelsa State

The first thought that comes to mind when I think of the South-South region is the fact that most of the states are large oil producers, but is that all the region has to offer? You must be familiar with the phrase ‘tax is the new oil’ and it is not merely a phrase but a reality that is being birthed.

Is your Company’s data secured?. . . Benefits of Engaging the Services of a Licensed DPCO

What is a DPCO?

A ‘Data Protection Compliance Organisation’ (DPCO) means any entity duly licensed by the National Information Technology Development Agency (NITDA) for the purpose of training, auditing, consulting and rendering services and products for the purpose of compliance with this Regulation or any foreign Data Protection law or regulation having effect in Nigeria’.

COMPANIES INCOME TAX AND THE DIGITAL ECONOMY

Introduction

The world’s most popular media company Facebook, creates no content. The world’s most popular retailer Ali Baba carries no stock, and the world’s largest accommodation provider, AirBnB, owns no property.

The above quote is as pertinent as it is trite. Straits Times notes that digitization has led to the emergence of new business models and increased international trade, while removing the need for a company to have physical presence in a country to conduct business with its residents.