AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Yes. If you are tax resident in Italy, the return on Nigerian Treasury bills is Italian taxable income, declared in the Redditi PF return when no Italian intermediary handles it (quadro RM, section II-A, line RM31). Interest on government securities of a white-list state is taxed at 12.5% rather than 26%, and Nigeria was added to the Italian white list by a decree of 9 August 2016; the bills must also be reported in quadro RW.
Nigerian Treasury bills are short-term debt of the Federal Government, sold at a discount and repaid at face value. The gap between what you pay and what you get back is your return. Many Nigerians in Italy buy them through a Nigerian bank or broker because the naira yields look high next to euro deposits. The Italian tax side is the part people tend to miss.
Italy taxes its residents on worldwide income
Once you are tax resident in Italy, income from abroad is declared in Italy, including interest and similar returns earned in Nigeria. Our guide to when you become tax resident in Italy covers the residence tests. If you are resident, the T-bill discount is not exempt just because it stayed in a Nigerian account.
Where the investment is held with a Nigerian bank or broker, no Italian bank withholds tax for you. You declare it yourself. A commercialista writing for Fiscomania (May 2025) explains that foreign capital income received directly is reported in quadro RM, section II-A, line RM31, and is subject to a substitute tax (imposta sostitutiva) whose rate matches the withholding rate for the same type of income under art. 18 TUIR.
12.5% or 26%: why the white list matters
The same guide lists the codes used on line RM31:
| RM31 code | Type of income | Rate (per Fiscomania, May 2025) |
|---|---|---|
| A | Interest on government and similar bonds of white-list states | 12.5% |
| A | Government bonds of states not on the white list | 26% |
| G | Interest on foreign deposits and bank accounts | 26% |
| H | Foreign dividends | 26% |
The white list is the Italian list of states that exchange tax information adequately. A FiscoeTasse summary of the list (Oct 2016) shows Nigeria "inserito con Decreto Ministeriale del 09 agosto 2016", published in the Gazzetta Ufficiale n. 195 of 22 August 2016. Treasury bills are Federal Government securities, so the 12.5% line is the one that normally fits them. The guide does not name Nigerian T-bills specifically, so confirm the code with your commercialista or CAF before filing.
What Nigeria takes first
On the Nigerian side, a Reuters report (29 Oct 2025) said the tax authority directed a 10% withholding tax on interest from short-term securities, naming T-bills as an example, where these had previously been exempt. The report did not give the start date or say whether the deduction is a final tax. Ask your bank or broker whether they deduct it and for a receipt; our article on withholding tax on Nigerian interest explains the Nigerian rules.
Italy and Nigeria have a tax treaty, but a 2022 Nigerian tax authority circular lists the Italy treaty as covering air and shipping only. It therefore gives no reduced rate on interest. Whether Italy gives a credit for Nigerian tax under the substitute-tax regime is not settled on the pages we read; the Fiscomania guide notes that some income can instead be taxed under ordinary rates with a foreign tax credit, but that is a choice to model with an adviser. See foreign tax credit in Italy for Nigerian tax.
Worked example
Example only, using round figures. You buy a 364-day bill with a face value of ₦10,000,000 for ₦8,600,000.
- Return at maturity: ₦10,000,000 − ₦8,600,000 = ₦1,400,000.
- If Nigeria withholds 10%: ₦140,000, leaving ₦1,260,000.
- Italian substitute tax at 12.5% on ₦1,400,000: ₦175,000, converted into euros for the return.
- Total tax if no Italian credit is given for the Nigerian deduction: ₦315,000, or 22.5% of the return.
The figures in your return are in euros, so you also need the euro value of the income. Keep the purchase and maturity statements and the exchange rate used, and ask your adviser which rate and date the rules require.
Quadro RW and IVAFE
Holding the bills abroad also means reporting them. Fiscomania (Jan 2026) says residents must report foreign financial assets in quadro RW, with no minimum threshold except for certain current accounts. IVAFE, the wealth tax on foreign financial assets, is 0.2% a year for most financial products and 0.4% for assets in non-cooperative countries; bank accounts pay a fixed €34.20. Penalties for not filing RW run from 3% to 15% of the undeclared value. Read quadro RW for Nigerian investments, including IVAFE.
What to check first
- Confirm you are Italian tax resident for the year.
- Get a statement from your Nigerian bank or broker showing purchase price, face value, dates and any tax withheld.
- Ask your commercialista to confirm the RM31 code (A at 12.5% for white-list government securities).
- Report the holding in quadro RW and work out IVAFE.
- Keep everything for at least the period Italian rules require for checks.
The Nigerian purchase steps are covered in how to buy Treasury bills in Nigeria and buying Nigerian T-bills from Italy.
Where Pryme fits
A Pryme account holds naira and euros side by side, so maturity proceeds can stay in naira or be converted when you choose with Swap, which shows the rate and the fee before you approve. Verifiable statements through receipts help when your adviser asks for proof.
Questions people ask
Is Nigerian T-bill interest tax-free in Italy?
No. For an Italian tax resident it is taxable. Interest on government securities of white-list states, which include Nigeria, is taxed at 12.5% rather than 26%, per a commercialista's guide to quadro RM.
Where do I declare Nigerian T-bill income in my Italian return?
When no Italian intermediary is involved, it goes in quadro RM, section II-A, line RM31 of the Redditi PF return. The holding itself goes in quadro RW.
Does the Italy–Nigeria tax treaty reduce the tax?
Not on interest. A 2022 Nigerian circular lists the Italy treaty as covering air and shipping only.
Do I pay IVAFE on Nigerian T-bills?
Foreign financial products held abroad are generally subject to IVAFE at 0.2% a year, and must be reported in quadro RW. Check the exact base with your adviser.
Sources
- Fiscomania: Redditi esteri nel quadro RM (F. Migliorini, 26 May 2025) · accessed Oct 2026
- FiscoeTasse: White list, elenco dei Paesi (Nigeria added by DM 9 Aug 2016) · accessed Oct 2026
- Fiscomania: Investimenti finanziari esteri, tassazione e obblighi dichiarativi (F. Migliorini, 27 Jan 2026) · accessed Oct 2026
- Bizcommunity (Reuters): Nigeria to impose 10% withholding tax on interest on short-term securities (29 Oct 2025) · accessed Oct 2026
- FIRS Information Circular 2022/15 on claiming tax treaty benefits (11 May 2022, hosted by KPMG) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.