In a letter sent to the Senate by President Muhammadu Buhari on Tuesday, March 15, sought to abolish double taxation with three countries namely South Korea, Spain and Sweden.
He called for the transmission of a bill for an Act to provide for the domestication and enforcement in Nigeria of the avoidance of double taxation agreements between Nigeria and the three countries.
The letter read in parts:
“The Senate is invited to note that agreements for the avoidance of double taxation between countries facilitate inter-states trade, economic and business activities as well as enable prospective investors to know the income tax obligation in each country and tax incentives available.
“They also ensure stable and reliable tax regimes and improve the cooperation between tax authorities through exchange of information among others.
“Pursuant to above, the Federal government on Nigeria entered into agreement for the avoidance of double taxation with the Kingdom of Sweden, Republic of South Korea and Kingdom of Spain which were duly executed on November 18 2004, November 6 2006 and June 23 2009 respectively after series of negotiations between Nigeria and each of these countries.
“For the agreements to be enforceable in Nigeria, they must be domesticated in line with the provisions of section 12 (1) of the constitution of the Federal Republic of Nigeria 1999 (as amended) which states that no treaty between the federation and any other country shall have the force of law to the extent that such treaty has been enacted into law by the National Assembly.
“Bearing in mind the interest of Nigeria and each of the three countries to these agreements vis a vis the economic vision of this government, the coming into the force of these agreements will no doubt facilitate the interchange of direct foreign investment.”
However, three bills were presented on the floor of the senate. The bills include the whistle blower protection bill 2016, the Nigerian Army Institute of technology and environmental studies bill 2016 and National roads fund bill 2016.
Other bills presented include the Public officers protection CAP P41 laws of the Federation of Nigeria, 2004 act (amendment) bill 2016 and Federal Road Safety Corps Act no.22, 2007 amendment bill 2016.
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