Tax residency in Nigeria

Any individual who is spending more than six months in a year is defined as a Nigerian resident under Nigerian tax regulation.

Even a foreigner who is in a possession of Nigerian residency permit is also considered a tax resident in the country.

Residents of Nigeria are considered as taxable for their overall income generated from any part of the world whereas a non-resident is considered as taxable on the part of income that gets generated from the business performed in Nigeria only. Non-resident non-native employees are hence considered as taxable in Nigeria except if;

(i)their employer is based outside of Nigeria.

(ii)their salary is not generated from a fixed base of their employer in Nigeria

(iii)their income is already being taxed in some other country.

All the taxes are collected by an agency named as National Federal Inland Revenue Service.