The Federal Government has approved the signing of an agreement between Nigeria and the United Arab Emirates (UAE) to eliminate double taxation as regards taxes on income and the prevention of tax evasion.
This was one of the key decisions reached at the first Federal Executive Council (FEC) meeting of 2024, presided by President Bola Tinubu, at the Presidential Villa in Abuja, on Wednesday.
The Council asked the Attorney General of the Federation, Lateef Fagbemi to work out an executive bill to address the issue of double taxation, to help Nigerian industries and encourage the flow of Foreign Direct Investment (FDI).
“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.
“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.
“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 authorising the Attorney-General and Minister of Justice to prepare a bill along this line to take to the National Assembly for ratification.“ Fagbemi stated.
In addition, the Attorney General of the Federation disclosed that the Federal Executive Council also approved the ratification of the agreement between Nigeria and the UAE on the reciprocal promotion and protection of investments.
Other key decisions reached at the FEC meeting
The Federal Executive Council reached several other key decisions in its first meeting of 2024. The Special Adviser on Information and Strategy to President Tinubu, Bayo Onanuga, shared a highlight of these key decisions via a post on his official X (formerly Twitter) handle.
They include:
Approval of the Group Life Assurance for Federal workers, ministers, para-military and intelligence officers at a cost of N9.25 billion.
Approval of the request by the Oyo state government to reconstruct the Ojoo Interchange at Moniya-Akinyele. Oyo government will fund the project.
Deliberation on the problems of pharmaceutical companies in the country and what can be done to protect them via tax and excise duties reduction to make cheaper drugs available to our people.
Restoration of funding to 13 healthy regulatory agencies was initially defended in the 2024 budget, of which Nairametrics has reported.
Approval to develop enforcement structure by the Defence minister and Minister of Solid Minerals to stop illegal mining, illegal logging etc
Approval of policy guidelines on Transnational Education in Nigeria.
Approval of the authority of the Federal Ministry of Health to approve recruitment of urgently needed health workers, to reduce bureaucracy.
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Press Release from: Carey Olsen, Thursday 8 February, 2024. Carey Olsen Hong Kong has advised on the Cayman Islands legal and regulatory aspects of the formation of Align Partners Korea Fund, Align