Double taxation is a situation where an individual or business entity is taxed twice on the same income in two different countries. This can be a frustrating and costly experience for businesses, especially those that operate internationally. To avoid this situation, countries form double taxation agreements (DTAs) with each other. These agreements help to alleviate the burden of double taxation and promote international trade and investment.

Nigeria, as a member of the global community, has signed DTAs with several countries around the world. In this article, we will highlight some of the countries that have double taxation agreements with Nigeria.

1. The United States of America

The United States of America is one of the countries that have a double taxation agreement with Nigeria. The agreement, which was signed in 1992, covers taxes on income and capital gains. It also provides for the exchange of information between the two countries` tax authorities.

2. The United Kingdom

The United Kingdom is another country that has a double taxation agreement with Nigeria. The agreement was signed in 1987 and revised in 1993. It covers taxes on income and capital gains, as well as inheritance tax, and applies to individuals and companies.

3. France

France and Nigeria signed a double taxation agreement in 1973, with a revised agreement signed in 1982. The agreement covers taxes on income and capital gains and provides for the elimination of double taxation.

4. Canada

Canada and Nigeria signed a double taxation agreement in 1999. The agreement covers taxes on income and capital gains and provides for a reduced tax rate for dividends paid by Canadian companies to Nigerian residents.

5. China

China and Nigeria signed a double taxation agreement in 2005. The agreement covers taxes on income and capital gains and provides for the elimination of double taxation. It also provides for the exchange of information between the two countries` tax authorities.

6. South Africa

South Africa and Nigeria signed a double taxation agreement in 2000. The agreement covers taxes on income and capital gains and provides for the elimination of double taxation.

In conclusion, double taxation agreements play a crucial role in promoting international trade and investment. They help to avoid the burden of double taxation, which can be frustrating and costly for businesses operating in more than one country. The countries highlighted in this article are just a few of the many countries that have double taxation agreements with Nigeria. If you are a Nigerian business owner operating internationally, it is essential to seek professional advice on how these agreements may affect your tax obligations.