Buhari Writes Senate To Approve Taxation Agreements With 3 Countries
Wed Mar 16, 2016 08:50:am National
2.5K By sosa hills
President Muhammadu Buhari on Tuesday transmitted Bills on Taxation agreements between Nigeria and the Federal Republic of South Korea, Spain and Sweden to the Senate for approval.
In a letter addressed to the President of the Senate, Dr Abubakar Bukola Saraki, dated March 14, 2016, and entitled: "Transmission of Bills for Acts to provide for the Domestication and Enforcement in Nigeria of the avoidance of double taxation agreements between the Federal Republic of Nigeria and three other countries ( South Korea, Spain and Sweden)" the President said that the agreement would ensure stable and reliable tax regimes and improve the cooperation between tax authorities through exchange of information among others.
He invited the upper chamber to note that agreements for the avoidance of double taxation between countries facilitate interstates trade, economic and business activities as well as enable prospective investors to know the income tax obligation in each country and the tax incentives available.
Buhari noted that pursuant to the above, the Federal government of Nigeria entered into agreements for the avoidance of double taxation with the Kingdom of Sweden, Republic of South Korea and Kingdom of Spain that were duly executed on November 2004, November 6, 2006 and June 23, 2009 respectively after series of negotiations between Nigeria and each of these countries.
He said: "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 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 force of these agreements will no doubt facilitate the interchange of direct foreign investment," he said.
In a letter addressed to the President of the Senate, Dr Abubakar Bukola Saraki, dated March 14, 2016, and entitled: "Transmission of Bills for Acts to provide for the Domestication and Enforcement in Nigeria of the avoidance of double taxation agreements between the Federal Republic of Nigeria and three other countries ( South Korea, Spain and Sweden)" the President said that the agreement would ensure stable and reliable tax regimes and improve the cooperation between tax authorities through exchange of information among others.
He invited the upper chamber to note that agreements for the avoidance of double taxation between countries facilitate interstates trade, economic and business activities as well as enable prospective investors to know the income tax obligation in each country and the tax incentives available.
Buhari noted that pursuant to the above, the Federal government of Nigeria entered into agreements for the avoidance of double taxation with the Kingdom of Sweden, Republic of South Korea and Kingdom of Spain that were duly executed on November 2004, November 6, 2006 and June 23, 2009 respectively after series of negotiations between Nigeria and each of these countries.
He said: "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 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 force of these agreements will no doubt facilitate the interchange of direct foreign investment," he said.
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