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PROTOCOL

At the time of signing the Agreement between the Government of the Federal Republic of Nigeria and the Government of the United Arab Emirates for the Avoidance of Double Taxation with respect to Taxes on Income and Capital Gains, the undersigned being duly authorized thereto have agreed upon the following provisions which shall be an integral part of this Agreement:

(1) With reference to the Agreement as a whole, it is understood that:

  • (a) the Agreement does not restrict in any manner any benefit (e.g. exclusion, exemption, reduction, deduction, credit or other allowance) now or hereafter accorded:
    • (i) by the laws of either Contracting States, or
    • (ii) by any other agreement between the Contracting States;
  • (b) should the Federal Republic of Nigeria, accords or grants, a treatment more favourable than that accorded to residents of the United Arab Emirates under this Agreement, the same favourable treatment shall automatically be accorded to residents of the United Arab Emirates under this Agreement upon request;
  • (c) the Federal or the Local Governments and their financial institutions in either Contracting States shall be exempt from tax in the other Contracting State in respect of any income or capital gains derived, except on income and gains from hydrocarbon as stated in Article 3. The entities listed in Article 4 of this Protocol are deemed being integral part of the Federal or Local Governments of both Contracting States.

(2) For the purposes of Article 5 paragraph 1, a resident of a Contracting State includes:

  • (a) the Government of that Contracting State and any political subdivision or local Government or local authority thereof;
  • (b) any person other than an individual owned or controlled directly or indirectly by that State or any political subdivision or local government or local authority thereof;
  • (c) any other entity the capital of which is wholly or partially directly or indirectly owned by the Federal or Local Governments of either Contracting States (a qualified government entity);
  • (d) a pension fund. For the purposes of this paragraph, a pension fund means any plan, scheme, fund, trust, or other arrangement established in a Contracting State, which is generally exempt from tax in that State and operated principally either to administer or provide pension or retirement benefit or to earn income for the benefit of one or more such arrangements;
  • (e) charities or religious, educational and cultural organizations.

(3) With respect to Article 9 it is understood that the profit of air enterprise shall include:

  • (a) selling of tickets on behalf of another enterprise.
  • (b) income from selling of technical engineering to a third party.
  • (c) income derived from bank deposits, bonds, shares stocks and other debentures.

(4) For the purposes of paragraph 4 of Article 12 (interest), paragraph 3 of Article 13 (Royalties), and paragraph 4 of Article 21 (Government Service) it is understood that the term statutory body shall include:

  • (i) in case of the United Arab Emirates:
    • (1) Abu Dhabi Investment Authority;
    • (2) Abu Dhabi Investment Council;
    • (3) Emirates Investment Authority;
    • (4) Mubadala Development Company;
    • (5) Abu Dhabi National Energy Company (TAQA)
    • (6) International Petroleum investment Company (IPIC);
    • (7) Dubai World;
    • (8) Investment Corporation of Dubai;
    • (9) Recognized pension funds;
    • (10) Dahra Holding Company; and
  • any other entity the capital of which is wholly or partially directly or indirectly owned by the federal or local Governments of the United Arab Emirates, including a political subdivision and local authority thereof as may be agreed upon from time to time between the Governments of the Contracting States through notifications by the competent authorities.
  • (ii) in the case of the Federal Republic of Nigeria:
    • (1) Nigeria Sovereign Investment Authority (NSIA);
    • (2) Federal Ministry of Finance Incorporated;
    • (3) Asset Management Corporation of Nigeria (AMCON);
    • (4) Recognized pensions funds; and

any other entity the capital of which is wholly or partially directly or indirectly owned by the federal or local Governments of the Republic of Nigeria, including a political subdivision and local authority thereof as may be agreed upon from time to time between the Governments of the Contracting States through notifications by the competent authorities.

(5) With respect of paragraph 5 of Article 15, it is understood that paragraph 5 includes capital gains from the alienation of shares, bonds, debentures and other forms of interest derived by a resident of a Contracting State, and such gains shall be taxable only in the State of which the alienator is a resident.

IN WITNESS WHEREOF, the undersigned, duly authorized thereto by their respective Governments, have signed this Protocol.

DONE in duplicate at Abu Dhabi on 18 January 2016, in two originals in the Arabic and English languages, both texts being equally authentic, in case of divergence of interpretation the English text shall prevail.

FOR THE GOVERNMENT OF THE FEDERAL REPUBLIC OF NIGERIA:

FOR THE GOVERNMENT OF THE UNITED ARAB EMIRATES: