Bitcoin Forum

Bitcoin is a decentralised crypto asset, and a situation where Naija wants to implement Tax Law on Personal Income, Business Profit and Gains, where the gains have part talking about the profits made from digital investments.

A statement from a video said that when it comes to taking tax on crypto currency, the government has modalities on how to go around it, and this made me wonder, is it as traders or investors that they will be watching, will the taxes be taken from exchanges or wallets (which is not possible) cause if no one makes withdrawal to bank account, no one will know if there's profit made or any crypto related activities going on with such a person, and also, where the transaction description is highly viewed.

Will this Tax Law affect us more or less?

They can make deal with an exchange. I think this was implemented in Kucoin some months ago.
No they can't really tax you on your Non custodial wallet because well it's pseudonymous.
In the end if you converting to cash it has to pass through banks.


Directly and indirectly.
Most of this Tax reforms are better than the previous
But those weren't properly implemented.
You know Nigerians
If tax per bread na 50 naira dem go add 150
So expect prices of things to increase.
 

Insane in the TV station how they are discussing on how this is going to be and why every Nigerian citizen must comply with the new police of paying their tax because there will be a tax identification number given to everyone who commits to paying it.

But in the use of bitcoin and it's p2p network, do we expect to also pay tax for our trading or exchange? Well I want to believe that this will not have much effect on the citizens at large or some of us being into cryptocurrency, but only those who have their job or earn salary monthly could be affected.

We do not know yet how the government will do it but not all exchanges that has P2P that have license in Nigeria, if Nigerian government try something like that by making all the exchanges to comply, people will move to decentralized exchanges. It will take time before this can happen, what will happen now is that people will have to self report their taxes.

It's not possible for the Nigerian government to tax any digital asset that's in our personal wallets, so the Nigerian government won't tax the assets in our wallets. If the Nigerian government will tax crypto when the new tax reform takes effect in January, I think the Nigerian government will work hand-in-hand with centralised exchanges like Bybit and Bitget to tax traders. I can't really say if the new tax reform will affect us more or less because the tax hasn't taken effect yet.

Our government will definitely go this direction when they realize that many people have resorted to using cryptocurrency. I remembered when they made that deal with Kucoin and were taxing Nigerians 0.5% or so, I have stopped using Kucoin so I don't know if they still do till now. What I know about these tax laws is that it will help people to save their Bitcoin in our wallets rather than convert to Naira to avoid being taxed unnecessarily. I know that they will not tax every funds that enters the account if they are properly marked, so what we should be studying now is the right way to describe the transactions to avoid double taxation.

If someone online is fully into cryptocurrency and yet I don't earn from the government or any private establishment, should I also be expected to pay my taxes, to me, if government could not provide me with what is needed to enjoy life like job, good road for the people and international opportunities, I don't see paying tax from what has been earned from what I've been doing in bitcoin, except if am a salary earnerm.

Th impact of the tax will be possibly limited for those who keep their activity on-chain. Monitoring of government mostly focuses on exchanges and bank withdrawals, not individual wallets. When you cash out using regulated platforms, they would report gains. When you hold or move crypto from wallet to wallet, it becomes difficult for them to track. The law majorly affects those who convert to fiat or making use of exchanges, instead of quiet holders or traders that stay within the ecosystem of crypto.

The new law formalizes the crypto space and demands compliance, which is a more headache and tax expense for active traders, especially those who use regulated exchanges. However, for the ecosystem as a whole, it provides the less risk of regulatory ambiguity and outright bans, fostering a more legitimate and stable market environment.

Income tax is deducted from every deposits into your bank account, as long as you do p2p and pay bills your taxes are being deducted you should know that, is true that the Bitcoin that is in our wallet can't be taxed but anytime you want to exchange that Bitcoin to Fiat the tax equivalent will be charged, any how let wait to see the reality as it unfolds.

I don't think it'd affect crypto users more since the crypto market isn't directly involved with commodities nor any of the regulating assets rather will be taxed through exchange transactions on p2p trading.
So we could be charged based on percentage of the amount we're trading.
What baffles me is how would the taxing ministry know when someone who want to sell his coin be of profits? Because I'm sure that bitcoin or crypto currency can be gifted and sure that the beneficiary wouldn't make any income or profits out of it. I'm on the input that they may only charge on transaction fees on the exchange. Maybe we can't literally say it's a tax. Just my opinion though.

I wonder how the price of goods and services will be from next year because things like this that appear negatively at first to Nigerians, we Nigerians normally use it in a wrong way to siphon from our fellow citizens, to give the government a bad name.

Well, I believe with time by next year, we will all have a clear understanding of how this tax works by stating the exact reason we are making a transaction to someone else.

You know, many Nigerians don't really describe the reason why they are sending money to someone. They send it without a description. With this tax implementation, any money that enters your account, an explanation to it will be given. If it is for payment of goods and services or work done. If no description is given for the money sent, the government will then mark it as income, which, by the end of the month, the government, through the bank, will calculate how much money enters your account as income. Then take away the tax from the income money for the month

https://i.ibb.co/405pwGz/20251211-124452.jpg (https://ibb.co/405pwGz)

Non-custodian wallet cannot be taxed. They do not need compliance because they do not require KYC or need to pass regulations in a particular region before they can operate.

So far, all users of a centralized exchange will be taxed based on the agreement made between the government and the management of the CEX.

At the point of completing transactions on p2p, your bank account is where he money goes in, and any/every deposit triggers an alarm on income into the said account. But, what I am looking at is if this is truly implemented, that means we will definitely be charged for tax because it will be very narrow for every/any crypto gig to receive less than ₦800k a year, of which below this income will not be charged to pay tax.

The tax law isn't applicable to crypto currency or the bitcoin you have in your holdings. It is only when you sell your bitcoin and and the money hit your local bank account that is when you will be tax. But for now I don't know much about the tax , if it is only those that have large investment that will be tax.
If your bitcoin remains in your wallet nobody can tax you not even the government especially when you are making use of non custodial wallet.

Maybe that’s why the government had to enter an MOU with France, before they will make such claims of taxing everyone and platform i feel they would have calculated the possibility, most times advanced countries have there means so i won’t be surprised if it is possible, my only concern is that this tax reforms has been there for donkey years it is just Tinubu government that is carrying it on there head, not like he has put up a good structure that will favour the people but he is just concerned about tax tax tax, it’s also not as if the money generated will be used for the benefit of the people.

You need to see how happy the French representative was on camera😂 seems they have calculated huge benefit from this whole tax issue, fear the whites they hadly do anything without profit, it’s the poor masses that will suffer it more but every other traders including bitcoin traders will feel it, it will affect everyone tremendously, first prices of things are high and income is low when this tax reforms set in it will make it worse, let everyone brace for impact next year.