Double Tax Agreement Between South Africa And Nigeria

Countries enter into agreements/DTT on the basis that this would ultimately benefit both economies. However, this is not always the case, as some countries have apparently benefited more than others from DTT agreements. In this context, the federal government should also review the current tax arrangements with other countries to determine whether Nigeria actually benefits from these DTTs. If it is established that Nigeria is not doing so, the renegotiation and modification of key DTT clauses should not be repealed. If contracts are signed with other countries in Nigeria, they do not automatically have the force of law. Section 12 of the 1999 Constitution of the Federal Republic of Nigeria expressly provides that a treaty between Nigeria and another state must enter into force before the legal force of the National Assembly. On the basis of international trade conventions, each country is allowed to adopt laws, rules and regulations that govern its trade relations with other countries so that it can achieve the desired strategic objectives. An important aspect of these trade laws is the tax legislation that governs how the incomes of individual countries are taxed. Since the laws of one country may differ from those of another country, there may be potential conflicts that may impose the same income in different countries.

This requires international conventions or treaties to establish conditions under which residents of different countries where conflicts are minimal can trade with each other and reduce the frequency of double taxation on their income. One of the objectives of tax treaties is to avoid double taxation; combating tax evasion and double non-taxation; The transfer of primary tax rights to a country; mutual assistance in the management and enforcement of tax legislation between countries. These objectives ensure that both countries benefit from the resulting increase in trade and investment. In all circumstances, the conclusion of any contract is usually preceded by negotiations between the countries concerned. In order to fairly examine the treaties and their adoption in Nigeria, the provisions of the Constitution of the Federal Republic of Nigeria of 1999 (as amended) (CFRN); TMPA; and the Corporations Tax Act 2007 (CITA) must be taken into account.