APA & MAP Country Guide 2019 - Nigeria - DLA Piper
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APA & MAP Country Guide 2019 – Nigeria CONNECTING THE DOTS OF INTERNATIONAL TAX CONTROVERSY
APA & MAP COUNTRY GUIDE 2019
Nigeria
APA Program
KEY FEATURES
Competent authority The Federal Inland Revenue Service (FIRS)
Relevant provisions Regulation 9 of the Transfer Pricing Regulations of
2018 (the Regulations)
Types of APAs available Unilateral, bilateral and multilateral APAs are available.
Acceptance criteria A request to FIRS for an APA should state the
following:
• the proposed activities, controlled transactions, and
the scope of the advanced pricing agreement; and
• an analysis of the comparability factors and the
critical assumptions as to future events under
which the determination whether the person has
complied with the arm’s length principle for certain
future controlled transactions.
Key timing requests, There are no deadlines for negotiating and approving
deadlines an APA. Completion of the negotiation will determine
the date the APA will commence.
APA term limits There is a three-year maximum term for an APA.
Filing fee There is no filing fee.
Rollback availability No specific guidance.
Collateral issues No specific guidance.
2NIGERIA
PRE-FILING REQUIREMENTS
Overview No specific guidance.
Anonymous pre-filing No specific guidance
availability
APPLICATION REQUIREMENTS
Content of application The application should include:
• a detailed description of the controlled transactions
to be included within the scope of the APA;
• an analysis of functions to be performed, assets
to be employed, and risks to be assumed by the
parties to the transactions in the APA; and
• the proposed duration of the APA.
Additionally, a proposal by the taxable entity for the
determination of the transfer prices should set out:
• an analysis of the comparability factors;
• the selection of the most appropriate TP method to
the circumstances of the controlled transactions;
• the critical assumptions as to future events under
which the determination is proposed;
• the identification of any other country or countries
that the person wishes to participate in the
advanced pricing agreement; and
• any other information that the FIRS may require.
Language The request should be submitted in English.
SME provisions No specific guidance.
3APA & MAP COUNTRY GUIDE 2019
OTHER PROCEDURAL CONSIDERATIONS
General The FIRS is required to treat the trade secret or
any other commercially sensitive information or
documentation provided in the course of negotiating
or entering into the APA as confidential.
Monitoring & compliance The FIRS has the powers to monitor and investigate
compliance with the provisions of the APA during tax
reviews.
Renewal procedure The Regulation is silent on renewal; however, it is
expected that the APA will include a renewal provision
and will be renewable provided there is no prior
breach, or non-compliance with the APA, or any
material change in the tax legislation in Nigeria.
Where any of the above occurs, FIRS is authorized to
terminate the APA.
4NIGERIA
MAP Program
KEY FEATURES
Competent authority The Federal Inland Revenue Service.
Relevant provisions An MAP request can be made when a Taxpayer
considers that the actions of one or both contracting
states’ tax authority’s results, or will result in taxation
not in accordance with the relevant Double Taxation
Treaty. Taxpayers can approach the tax authority of the
requisite contracting state with a request to initiate MAP.
Acceptance criteria No specific guidance.
Key timing No specific guidance.
requests, deadlines
APPLICATION REQUIREMENTS
Content of application No specific guidance.
Language No specific guidance.
OTHER PROCEDURAL CONSIDERATIONS
Interaction with domestic No specific guidance.
proceedings
Arbitration No specific guidance.
STATISTICS
APA Statistics are not publicly available.
MAP Statistics are not publicly available.
5APA & MAP COUNTRY GUIDE 2019
Double Taxation Treaty Network
The following treaties include MAP provisions which are the basis for bilateral and
multilateral APA negotiations:
Belgium Italy Slovakia
Canada Netherlands South Africa
China Pakistan United Kingdom
Czech Republic Philippines
France Romania
Notes
i. denotes treaties with MAP arbitration provisions. (I* denotes treaties to which MAP arbitration
provisions under the MLI apply)
ii. denotes treaties with the USSR that remain applicable until a separate tax treaty is concluded.
iii. denotes treaties between the countries’ representative office in Taipei and the Taipei Economic
and Cultural Office in the relevant country.
iv. denotes treaties that became effective within the last five years.
v. denotes treaties that are awaiting ratification.
vi. denotes MAP provisions identical to para 3, art 25 of the OECD Model Convention with respect to
Taxes on Income and on Capital.
vii. arbitration is to be conducted under the statutes of the ECJ.
viii. arbitration is to be conducted under the statutes of the ICJ.
6NIGERIA
7DLA Piper is a global law firm operating through various separate and distinct legal entities. Further details of these entities can be found at www.dlapiper.com. This publication is intended as a general overview and discussion of the subjects dealt with, and does not create a lawyer-client relationship. It is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. DLA Piper will accept no responsibility for any actions taken or not taken on the basis of this publication. This may qualify as “Lawyer Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome. Copyright © 2019 DLA Piper. All rights reserved. | APR19 | A00091
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