Global Tax Alert (News from Transfer Pricing) | 12 November 2013

Nigeria sets up Transfer Pricing Division and publishes transfer pricing forms

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Transfer Pricing Division

Nigeria's Federal Inland Revenue Service (FIRS) has established a Transfer Pricing Division.1 The Division will be responsible for the implementation and administration of the Income Tax Transfer Pricing Regulations No.1 2012 (TP Regulations). The TP Regulations provide a framework to confirm whether related party transactions comply with arm's length principles.

Transfer pricing forms

The FIRS also recently published its much awaited TP Disclosure Form as well as an updated version of the TP Declaration Form which was previously published as a schedule to the TP Regulations. Both Forms are required for the disclosure and declaration of related party transactions as described within the Nigerian TP Regulations. In line with the TP Regulations and unofficially confirmed by the FIRS, companies are required to file both the TP Declaration Form and the TP Disclosure form with their annual tax returns.

It should be noted that while the TP Declaration form focuses primarily on the related parties, the TP Disclosure form places emphasis on the intercompany transactions. Specifically, the TP Declaration Form requires taxpayers to provide information relating to the particulars of the company, its directors, parent(s), and external auditors. While the TP Disclosure requires taxpayers to disclose information pertaining to previous restructurings, their financial performance in comparison with their group's performance, and information regarding intercompany transactions consummated at no consideration (including interest free loans).


The timely set up of the TP Division and release of the TP Disclosure and revised TP Declaration forms should be considered as clear expressions of the FIRS' commitment in ensuring that Nigeria's TP regime is fully functional by 2014.


1. The Transfer Pricing Division office is located at the 3rd Floor of the FIRS Building, 17 b Awolowo Road, Ikoyi Lagos.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Nigeria, Lagos
  • Abass Adeniji
    +234 802 301 3597
  • Edem Andah
    +234 708 768 1113
  • Akinbiyi Abudu
    +234 806 240 4902
  • Chinyere Ike
    +234 126 953 67
Ernst & Young (China) Advisory Services Limited, Pan African Tax Desk, Beijing
  • Rendani Neluvhalani
    +86 10 5815 2831
Ernst & Young LLP, Pan African Tax Desk, New York
  • Dele Olaogun
    +1 212 773 2546
Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London
  • Leon Steenkamp
    +44 20 7951 1976

EYG no. CM3958