Lateef Fagbemi, attorney-general of the federation (AGF) and minister of justice, said that the federal government has approved a new taxation agreement with the United Arab Emirates (UAE) that intends to remove double taxes between the two nations.
Fagbemi made the announcement to state house media during a federal executive council (FEC) meeting presided over by President Bola Tinubu at the Presidential Villa on Wednesday.
He stated that the council has approved the Nigeria-UAE double tax treaty, which would be sent to the national parliament for confirmation.
The minister stated that if the treaty is adopted by the national parliament, it will improve economic connections between Nigeria and the UAE by eliminating tax hurdles for businesses and investors.
“One of the major issues discussed was the issue of double taxation, encouraging foreign direct investment. This time around, it’s about the relationship between Nigeria and the United Arab Emirates,” he said.
“You’ll recall that a while ago, the president was in the United Arab Emirates. One of the matters that came up for discussion and negotiation is the agreement for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoid avoidance.
“The Council noted that the agreement between both countries, that is, between Nigeria and the United Arab Emirates includes personal income tax, company income tax, petroleum profit tax, information technology levy, tertiary education tax, and capital gain tax.
“Because of the effect of this cooperation or the benefits that will accrue to Nigeria, the council agreed and directed that the agreement that had been signed already should be taken further by mandating the Attorney-General and Minister of Justice to prepare a bill along this line to take to the National Assembly for ratification.”
Fagbemi stated that the inclusion of the national parliament in the deal was intended to elevate it above the level of a standard contract, resulting in a formal treaty between two sovereign states.
According to the minister, the administration plans to expand the deal to additional countries.
In a related event, Doris Uzoka-Anite, minister of industry, commerce, and investment, also stated that the council has authorized an investment promotion and protection agreement (IPPA) between the nations for ratification by the national parliament.
According to Uzoka-Anite, her ministry would promptly use IPPA rules to evaluate and alter areas that may be adverse to Nigeria.
“Council also approved the ratification of the Investment Promotion and Protection agreements between Nigeria and the UAE,” she said.
Uzoka-Anite said it will immediately use the rule that allows the government to evaluate and alter areas that were not first deemed favorable.
“With the approval, we can now send the already-signed IPPA to the National Assembly for ratification.
“The council also approved that the Minister for Industrial Trade or Investment should also immediately invoke Article 26 of that agreement, which mandates that we can review and amend some sections of the IPPA to conform with the current IPPA model that we’re using, which is a 2016 model.”
