Nigeria: Stamp tax audits, oil and gas sector

KPMG report discusses in brief other developments for the oil and gas industry.

KPMG report discusses in brief other developments for the oil and gas industry.

Nigeria’s federal government has shifted its focus to audits for stamp tax (duties) compliance by the oil and gas sector.

Stamp tax audits are a source of revenue. The government anticipates that stamp tax collection from the oil and gas sector will only be second to oil revenue and has the potential to generate up to N1 trillion. Consequently, enforcement of the stamp tax provisions will be a priority in 2022. 

KPMG observation

Taxpayers in the oil and gas sector need to consider reviewing their records to determine their level of compliance and potential exposure. It is also important for companies to review their tax operating environment to evaluate the ability of their tax processes to capture transactions that are liable to stamp tax. To help companies manage the potential exposure, a stamp duties policy and procedural manual may be required in this regard.

Read a December 2021 report [PDF 1.06 MB] prepared by the KPMG member firm in Nigeria
 

This KPMG report also discusses in brief other developments for the oil and gas industry, such as:

  • The Petroleum Industry Act 2021
  • The Upstream Commission’s website launch
  • Nigeria’s actual production vs. Organization of the Petroleum Exporting Countries (OPEC) production quota
  • Oil prices

 

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