Don’t go all into bitcoin because of tax

[Frankolala]

However, whenever you convert it into Naira, especially if you make a profit from it, tax will be applicable.

I don't get you. How will the government knlw if you made profits from your bitcoin that's in your noncustodial wallet. Profits or not as long as you convert your bitcoin and it gets to 800,000 naira, you will be tasked.

[Charles-Tim]

However, whenever you convert it into Naira, especially if you make a profit from it, tax will be applicable.

I don't get you. How will the government knlw if you made profits from your bitcoin that's in your noncustodial wallet. Profits or not as long as you convert your bitcoin and it gets to 800,000 naira, you will be tasked.

This is not completely true. If you buy 800,000 naira worth of bitcoin and you make just 200,000 naira from it throughout the whole year, the money will not be taxed if you sell the whole 1 million naira. But if you make extra money that is more than 600,000 naira, including the 200000 naira profit, any money earned above it will be taxed. So, it is not just about the money reaching 800,000 naira but it is about your profit to get more than 800000 naira. The money invested is not among.

The government can not know all, you will be the one that will try not to evade the tax.

[Salahmu]

As they won escape the tax through Bitcoin no mean say them no go spend money because life they to live so actually people won just leave everything for Bitcoin and maintain the money way go they free from paying the taxable amount, some people done they talk say amount below ₦20 million no go they taxable but I no sure whether e they true because na only the ₦800k annually I they always see for the tax free, Nigerians done they catch there cruise with the remark kind of comments because I no say na waiting everybody done they use now for all the transfer them done make.

[Cossyblack]

What are things you go advice people who Dey come bitcoin because of the tax me I go advice them to have an emergency fund out of bitcoin.

No need for plenty talk. As be sa we be citizens we suppose pay taxes,dat one na normal thing and plenty ways still dey to avoid getting taxes automatically.
Every transactions , try and inform the sender to dey add description so that government no go mistake money wey enter your account as income.

Secondly, government no dey taxes corporate accounts wey annual incomes dey below 50 million Naira. If you open corporate accounts, that one don means you don dey exempted from paying taxes bcos govt no fit tax you except your annual income don exceeds  50 million NGN.

[MarissaLopez]

People receiving their money in naira will easily be taxed if done appropriately.

People on forum like this will first have to convert their coins to naira before they can be taxed. People prefer fiat-pegged stable coins than having naira.

Do you mean people will be taxed in naira it not done appropriately?? Because I was wondering how can one actually achieve a successful transactions void of tax usually when they tend to convert their coins to naira and send to their domicile accounts.
So from all indications the tax policies would greatly affect people converting to naira so how do one tend to bypass that.

Is there any way that could be possible to avoid being taxed? Or rather do you think Bitcoin is the right decisions to escape it cause the whole issues of tax policy is being confusing putting people on highway pressure and fear.

[Charles-Tim]

Is there any way that could be possible to avoid being taxed? Or rather do you think Bitcoin is the right decisions to escape it cause the whole issues of tax policy is being confusing putting people on highway pressure and fear.

I do not think anyone can be able to evade the tax except the person only just did not pay it. And if known to the government, it will have fine or penalties which will be greater than the money that supposed to have been paid.

But I do not like how poor people will be among those that will also be taxed. At least the minimum tax free income should be around 3 million naira.

[Zackz5000]

So the real reason people on this forum will be taxed is when they convert money to naira and that will most likely be when they want to spend.

This is why I don't bother much about the tax structure, as long as your money are kept in a non custodian wallet it won't be traced to you through banks or any Centralised exchanges.


Also, I see this as a point to start negotiating with does you are getting something from or business partners, if they can accept bitcoin. This helps reduce the number of transactions one will be making in naira.

Not everybody is into Bitcoin investment or that have wallet to receive their Bitcoin so i think it can't be possible unless such person is into crypto currency, as for me the tax payment no worry me but i believe say e go affect people way no too understand how to follow this government. I believe say e get description to follow when sending money to people like loan repayment and so on so that will knw the purpose of the money in other not to be tax if this method will work people no go too worry them self.

[AmaGold70]

New Year’s Eve is a time for one or two resolutions and plans will start taking place. 2026 has something new. The Tax will ultimately start in 2026 and the system of tax go Dey new to Nigerians and we don already Dey find ways we go take cope for the tax
The transfer narration don spread like wide fire, friend and family won blind me with it even if it will not be the major factor for tax it is a good to write the right description for transferring.

Bitcoin go be another big thing people who don’t want the tax go Dey in. The tax is on annual income above 800k we go see income earners earning in bitcoin to hold off the tax charge.

While bitcoin good having all income in bitcoin go Dey bad.
Normal.

What are things you go advice people who Dey come bitcoin because of the tax me I go advice them to have an emergency fund out of bitcoin.

I don't advice anyone to go all in on Bitcoin because they are trying to avoid the tax payment, Bitcoin is volatile so what happens if you put everything in Bitcoin and it crashes leaving you without nothing not even enough for your daily expenses? Holding Bitcoin shouldn't be for the wrong reasons because you might end up shooting yourself in the leg, Bitcoin should be for investment on the long term goal thereby giving your money time to grow and bring you profits. Me sef wan avoid the tax because e sure me say our government no even use am do better thing for us but I still no go put everything for Bitcoin so na to just put some for Bitcoin and leave some for emergency and other things.

[Fiatless]

Not everybody is into Bitcoin investment or that have wallet to receive their Bitcoin so i think it can't be possible unless such person is into crypto currency, as for me the tax payment no worry me but i believe say e go affect people way no too understand how to follow this government. I believe say e get description to follow when sending money to people like loan repayment and so on so that will knw the purpose of the money in other not to be tax if this method will work people no go too worry them self.

The Nigerian government has said that it doesn't have any business with transaction descriptions. This tax will not be deducted from deposits or withdrawals. This law mandates all Nigerians to file their income tax returns for the year. It is from the report you submitted that you will be taxed. The government also has the power to investigate your financial transactions if it suspects that your report is inaccurate. You wouldn't have any problem if you could defend the details of your monthly or yearly tax declaration.   

[Amphenomenon]

This is why I don't bother much about the tax structure, as long as your money are kept in a non custodian wallet it won't be traced to you through banks or any Centralised exchanges.

The problem is how long can you keep holding your Bitcoin in a non-custodial wallet? If you don't have an alternative way of income, you will have to use what you have to sustain yourself before you can save the rest, so you have to use Naira because in Nigeria, most of our businessmen don't accept payment from other currencies or other means like the use of Bitcoin and other payment methods; therefore, this tax can't be avoided easily unless you hold all your coins for long, which you will still have to use with time. The only advantage will be if the coin gives you profit that can cover up for the tax.

This is why I don't bother much about the tax structure, as long as your money are kept in a non custodian wallet it won't be traced to you through banks or any Centralised exchanges.


Also, I see this as a point to start negotiating with does you are getting something from or business partners, if they can accept bitcoin. This helps reduce the number of transactions one will be making in naira.

Not everybody is into Bitcoin investment or that have wallet to receive their Bitcoin so i think it can't be possible unless such person is into crypto currency, as for me the tax payment no worry me but i believe say e go affect people way no too understand how to follow this government. I believe say e get description to follow when sending money to people like loan repayment and so on so that will knw the purpose of the money in other not to be tax if this method will work people no go too worry them self.

Both of you got me wrong. I know I can't use bitcoin to entirely avoid using our naira and thereby avoid the tax but it can be used when both party agrees to use it, like it is stated on my earlier post, it can be "negotiated", especially when the business is about property and devices which are expensive.

There individuals in that sector who may be open to accept bitcoin as an alternative to naira.

[Y3shot]

People receiving their money in naira will easily be taxed if done appropriately.

People on forum like this will first have to convert their coins to naira before they can be taxed. People prefer fiat-pegged stable coins than having naira.

So the real reason people on this forum will be taxed is when they convert money to naira and that will most likely be when they want to spend.

For those earning in the forum, there is no way you can bypass the tax because you will definitely convert your Bitcoin to naira, and when this money comes into your account, you will be taxed.

The only way anyone can escape being taxed by the federal government is to earn outside of your bank or if you are earning below the minimum amount for tax. So leaving money that is meant to be in the bank but converted to Bitcoin is not really a solution to escape the new tax law.