Teddy Nwanunobi, Abuja
President Muhammadu Buhari, on Tuesday, transmitted bills on the taxation agreements between Nigeria and three other countries, namely: South Korea, Spain and Sweden to the Senate for approval.
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 letter was addressed to the Senate President, Senator Abubakar Bukola Saraki, and dated March 14, 2016.
Buhari explained that the agreement would ensure stable and reliable tax regimes and improve the corporation between tax authorities through exchange of information among others.
He invited the Red Chamber 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 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.
“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.
The President said that he forwarded a copy of each of the draft Bills for Acts to domesticate each of the agreements for consideration and enactment by the Senate.