An Opportunity for Bitcoin P2P Usage

[NurseHub]

I read a news recently, which states that the President of Nigeria, just signed a new Acts (Bill) in to law and this Acts includes the Personal Income Tax (PIT). Here is the headline;

Individuals earning NGN800,000 or less per annum will now be exempt from tax on their income and gains, while higher income earners will be taxed at a higher rate up to 25%.

This means that most of us here and the masses in Nigeria will be paying 25% tax to the government soon, as long as you earn something good above 800k (Naira) per year!

Here is the catch: After reading this I thought of it as an opportunity for bitcoin, as long as you're not using an exchange or personal bank account you will not be charged or taxed because there is no much income in (fiat) naira coming into your bank account at the end of the year, so I thought of it as an opportunity for bitcoin P2P usage in Nigeria.

Individuals who deal with bitcoin can basically transact without using fiat and the real use of P2P in bitcoin will be activated if Nigerians choice to use it wisely and the 25% tax will not be a big deal for us.

[Ambatman]

This means that most of us here and the masses in Nigeria will be paying 25% tax to the government soon, as long as you earn something good above 800k (Naira) per year!

No that's not how it works. It's a progressive tax rate with 25% Been the maximum increase from previous 20%
Above 800K which is our new floor to 3 million Naira is 15%
And also it commences January Next Year.

https://www.google.com/amp/s/dubawa.org/will-nigerians-earning-about-n800000-yearly-pay-20-personal-income-tax/%3famp=1

You can check the link above for the comprehensive list.

And if you an Hodler, your Bitcoin is subject to Capital Gain tax which is 10% of realized profit


I believe this thread would be better suited in our local board.

[Bitcoin_Arena]

Wait, you mean you folks haven't been having any sort of income tax before?  
Most countries around the world that I know do have it, and it's mostly around 30% depending on the income class.

What they will do next is start introducing capital gains tax (tax aimed at your digital investment profits)

As for P2P, it appears your country was all over the news over banning cryptocurrencies, including arresting some Binance officials. Some people even complained of banks blocking their accounts for getting involved in P2P trading. How did this end?

[Ambatman]

Wait, you mean you folks haven't been having any sort of income tax before?  
Most countries around the world that I know do have it, and it's mostly around 30% depending on the income class.

We did but it started before at 300K Naira which was 7% until it was increased since our minimum wage was increased off recent
Our maximum 25% which is way better than most countries though I still complain about it Lol.

What they will do next is start introducing capital gains tax (tax aimed at your digital investment profits)

Already do. Which is 10% of realized profit with an exemption of 10,000 Naira.

As for P2P, it appears your country was all over the news over banning cryptocurrencies, including arresting some Binance officials. Some people even complained of banks blocking their accounts for getting involved in P2P trading. How did this end?

Well not fully Green but it's not illegal to own Bitcoin
There's even an amended portion in recent Act to account for gains from it
The only ban is that Banks are banned from engaging or getting involved in cryptocurrency.

[DiMarxist]

I read a news recently, which states that the President of Nigeria, just signed a new Acts (Bill) in to law and this Acts includes the Personal Income Tax (PIT). Here is the headline;

Individuals earning NGN800,000 or less per annum will now be exempt from tax on their income and gains, while higher income earners will be taxed at a higher rate up to 25%.

This means that most of us here and the masses in Nigeria will be paying 25% tax to the government soon, as long as you earn something good above 800k (Naira) per year!

Op your information is misleading and it would've been better you post this in the local board for proper correction. The part you quoted is contradicting with your comment. The quote said the tax is for those who are earning above N800,000 (monthly) and not yearly as you statement l. And you are saying most of us here and the citizens of Nigeria are to pay the 25% tax. That is not true. World bank estimated rate on the average Nigeria is still stand and which says that the average Nigeria is not living a dollar a day so from where the person that is not living with a dollar can pay that 25% tax. You would have made some concrete research before posting this. You can still read Ambatman link to comprehend the information.

[BitGoba]

I read a news recently, which states that the President of Nigeria, just signed a new Acts (Bill) in to law and this Acts includes the Personal Income Tax (PIT). Here is the headline;

Individuals earning NGN800,000 or less per annum will now be exempt from tax on their income and gains, while higher income earners will be taxed at a higher rate up to 25%.

This means that most of us here and the masses in Nigeria will be paying 25% tax to the government soon, as long as you earn something good above 800k (Naira) per year!

Here is the catch: After reading this I thought of it as an opportunity for bitcoin, as long as you're not using an exchange or personal bank account you will not be charged or taxed because there is no much income in (fiat) naira coming into your bank account at the end of the year, so I thought of it as an opportunity for bitcoin P2P usage in Nigeria.

Individuals who deal with bitcoin can basically transact without using fiat and the real use of P2P in bitcoin will be activated if Nigerians choice to use it wisely and the 25% tax will not be a big deal for us.

You cannot completely avoid paying taxes because the government taxes you in various ways. Even if you avoid capital gains tax, the government will still tax you indirectly through VAT, property taxes, or inflation, among others.

I checked on Google inflation in Nigeria is currently over 20%. This is practically a hidden tax, or a silent theft. If you simply hold and save Nigerian Naira, you lose about 20% of its value annually, which means you are, in a way, paying a tax.

Therefore, the smartest move is to gradually switch to Bitcoin and use it as your primary money for saving and spending. Try to develop a circular economy based on Bitcoin, where more people accept Bitcoin in everyday trade for goods and services. This is a way to avoid that hidden theft and preserve value by using deflationary money that will strengthen you financially

[Apocollapse]

Isn't you guys have been using Bitcoin via P2P because your government have banning/restrict banks to be involved with sources came from Bitcoin? so I'm not sure why you have to bring a same discussion which you guys have doing since few years ago.

I checked on Google inflation in Nigeria is currently over 20%. This is practically a hidden tax, or a silent theft. If you simply hold and save Nigerian Naira, you lose about 20% of its value annually, which means you are, in a way, paying a tax.

That's actually the of Bitcoin's return, if Bitcoin double our money after 4 years, Naira make your money in half after 4 years.

[buwaytress]

What P2P usage would you foresee though? P2P trading will only hurt your naira bank account.

I think it's businesses (freelancers or LLPs) accepting Bitcoin that will be the first to try and bypass this personal income tax thing, but that's no different from any country in the world. And, after all, income tax needs to be declared, banks generally won't check unless you're a big money spinner. In which case, you wouldn't be doing it on your naira account anyway.

So no, not an opportunity. Bitcoin is not how people escape tax.