The Federal Inland Revenue Services (FIRS) has issued a circular on the tax implications of regulated securities lending (RSL) transactions in Nigeria.


Key issues addressed include:

  1. Companies Income Tax – generally not applicable as many of the transaction flows are exempted.
  2. Withholding Tax – this is designed to avoid multiple layers of WHT so it is not applicable on various transactions except on interests paid by Lender to Borrower
  3. Personal Income Tax - the amendments relating to RSL only affect entities taxable under the CITA. Therefore, individuals that participate in RSL will continue to be taxed in line with existing provisions of the PIT Act.

Read our alert and the FIRS Circular below:

Download PwC Tax Alert_FIRS Finance Act Circular_Regulated securities lending transactions

Download FIRS Information Circular 2019 FA_Security Lending

Originally published 14 May, 2020

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