The Nigeria Revenue Service (NRS) has unveiled comprehensive guidelines on the taxation of virtual assets, introducing a detailed framework for the assessment of cryptocurrency, stablecoins, tokenised assets and other digital holdings, while prescribing penalties of up to N10 million for non-compliant virtual asset service providers.

The guidelines, released in a public notice yesterday, apply to taxpayers, virtual asset service providers (VASPs), peer-to-peer (P2P) marketplace operators, tax practitioners and other participants in the virtual asset ecosystem.

Issued pursuant to the Nigeria Tax Act and the Nigeria Tax Administration Act, the framework is part of the Federal Government’s efforts to expand the tax base and strengthen compliance within Nigeria’s rapidly-growing digital asset market.

According to the NRS, the guidelines outline registration, reporting and record-keeping obligations, valuation principles, and the tax treatment of a wide range of virtual asset transactions.

These include trading, exchange operations, brokerage commissions, transaction fees, custody and wallet services, token issuance, mining, staking, decentralised finance (DeFi) activities and investment gains.

Under the framework, profits derived from virtual asset transactions by companies will be subject to Companies Income Tax. Medium and large companies will pay the standard 30 per cent corporate income tax rate, while individuals will be assessed under the applicable progressive personal income tax regime.

The guidelines also distinguished between taxable and non-taxable transactions. Holding a virtual asset without disposing of it will not attract tax, as any increase in value remains untaxed until the asset is sold, exchanged or otherwise disposed of.

Similarly, transfers of digital assets between wallets owned by the same individual, where there is no change in beneficial ownership, will not constitute a taxable event. However, the exemption does not extend to transfers involving companies, partnerships, trusts or other corporate entities. The NRS added that such transfers will form part of the cost base for future disposals, underscoring the need for taxpayers to maintain accurate acquisition and transaction records.

A major provision of the guidelines requires every individual or entity engaged in virtual asset activities to register for tax purposes and obtain a Tax Identification Number (Tax ID) before commencing operations.

In addition, VASPs, including cryptocurrency exchanges, trading platforms and wallet providers as well as P2P escrow operators, must make a valid Tax ID a mandatory requirement for customer onboarding, in line with Section 8 of the Nigeria Tax Administration Act. The measure effectively integrates tax verification into the account opening process for regulated crypto platforms.

The operators are also required to deduct applicable withholding taxes, collect Value Added Tax (VAT) and stamp duties where applicable, remit the proceeds within statutory deadlines, file periodic tax returns and maintain comprehensive transaction records.

The NRS warned that failure to comply with the provisions would attract significant sanctions. VASPs and P2P marketplace operators that default face a penalty of N10 million for the first month of non-compliance and N1 million for every subsequent month until the breach is remedied.

Individuals and businesses that fail to register for tax purposes will be liable to a penalty of N50,000 for the first month of default and N25,000 for each additional month of non-compliance.

According to the NRS, the penalties are without prejudice to any other sanctions, interest or liabilities prescribed under the Nigeria Tax Administration Act or other applicable laws.

The NRS said the guidelines are designed to promote voluntary tax compliance, improve transparency and establish a more efficient tax framework for Nigeria’s virtual asset ecosystem. It urged all stakeholders to familiarise themselves with the provisions, which have been published on its official website.

The new tax framework comes weeks after President Bola Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026, establishing a Virtual Asset Council chaired by the Central Bank of Nigeria (CBN), with the NRS and the Securities and Exchange Commission (SEC) serving as vice-chairpersons. Other members include the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA), with responsibility for coordinating oversight of the sector.