Section 121 Nigeria Tax Act 2025

Section 121 of the Nigeria Tax Act 2025 is about Double taxation agreement. It provides as follows:

(1) Where the Government of the Federal Republic of Nigeria enters into an agreement with a treaty partner for the purpose of providing relief from double taxation in relation to tax imposed under this Act, the agreement shall have effect upon ratification or domestication by the National Assembly.

(2) Relief from double taxation shall be in respect of income tax paid under the laws of a treaty partner against income taxes imposed under this Act.

(3) Where an agreement has taken effect, any obligation as to secrecy in Nigeria Tax Administration Act, 2025 or any other law in Nigeria shall not prevent the disclosure of any information required to be disclosed under the agreement to an authorised officer of a treaty partner.

(4) The Minister may make rules for implementing the provisions of any agreement under this section.

(5) For the purposes of providing relief in Nigeria from double taxation, all extant double taxation agreements are deemed to have been made under the provisions of this section and shall apply throughout Nigeria with effect from 1 January of the year immediately following the date the agreement entered into effect.

(6) The agreement in subsection (1) shall be for the purpose of elimination
of double taxation, without creating opportunities for non-taxation or reduced
taxation through tax evasion, avoidance or other forms of abuse, including treaty-shopping arrangements aimed at obtaining reliefs provided in the agreement for the indirect benefit of residents of any other country or territory that is not part of the agreement.

(7) For the purposes of the agreement referred to in subsection (1), a non-resident may benefit under the agreement where the person is a resident of the relevant treaty partner and the beneficial owner of the income for which the benefit is being claimed.

(8) Nothing in this section shall be construed to allow a relief in respect of an additional tax paid for the relevant tax year under this Act or the domestic legislation of a treaty partner in conformity with the global minimum tax rules as it relates to a permanent establishment situated in the treaty partner.

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