Chairman of the Presidential Committee on Fiscal Coverage and Tax Reforms, Taiwo Oyedele, has clarified how the newly enacted tax reform legal guidelines will have an effect on Nigerians dwelling overseas, addressing key issues round tax submitting, remittances, Tax Identification Quantity (TIN), and residency guidelines.
In a Q&A issued to deal with issues of Nigerians within the diaspora, Oyedele clarified that Nigerians overseas aren’t obligated to acquire a Tax Identification Quantity (TIN) or file annual tax returns in Nigeria except they earn earnings from Nigerian sources, resembling employment or enterprise operations inside the nation.
“A TIN shouldn’t be required, and there’s no requirement to file tax returns except you earn employment or enterprise earnings from Nigeria,” he famous.
He added that non-residents with out Nigerian-source earnings are exempt, and compliance has been made simpler via on-line platforms resembling TaxProMax and simplified TIN software processes.
“A TIN can be not required to open or keep a bank account except the account is for enterprise functions or earnings receipts,” he added.
No double taxation for diaspora Nigerians
Oyedele mentioned earnings earned outdoors Nigeria and later remitted house won’t be taxed once more.
“Earnings earned overseas and introduced into Nigeria by a non-resident particular person is now particularly exempted from tax in Nigeria, no matter whether or not tax was paid overseas or not,” he mentioned.
He added that Nigeria’s Double Taxation Agreements (DTAs) with a number of nations — and new aid provisions for nations with out DTAs — be certain that the identical earnings shouldn’t be taxed twice.
He mentioned the clarification grew to become needed following widespread questions from diaspora Nigerians on the implications of the federal government’s new tax framework.
“Many Nigerians within the diaspora have raised questions relating to the brand new tax reform legal guidelines and their potential implications. This be aware offers solutions to the incessantly requested questions and clarifies problems with concern,” he defined.
Remittances and household transfers aren’t topic to tax
On the taxation of remittances, Oyedele assured Nigerians overseas that non-public transfers and household help funds aren’t taxable underneath the brand new tax legal guidelines.
“Real private transfers resembling household remittances, presents, refunds, or neighborhood financial savings contributions aren’t handled as taxable earnings,” he defined.
He mentioned solely earnings earned or deemed to be earnings—resembling wages, enterprise earnings, or funding returns—will appeal to tax. Tax authorities, he added, will subject clear pointers to differentiate between taxable and non-taxable inflows.
Tax residency primarily based on the 183-day rule
Explaining how tax residency is decided, Oyedele mentioned it relies on the 183-day rule, which considers the variety of days a person spends bodily in Nigeria inside a 12-month interval.
“Non-residents are taxed solely on earnings derived from Nigeria, resembling rental earnings, dividends, or enterprise earnings,” he clarified.
He harassed that diaspora Nigerians who reside overseas aren’t taxed on their international employment or enterprise earnings, and twin citizenship doesn’t have an effect on tax standing.
Pensions, stipends, and distant work earnings are exempt from Nigerian tax
On pensions and distant work earnings, Oyedele famous that pensions and stipends from overseas aren’t taxable in Nigeria except they come up from work carried out inside Nigeria.
“Solely earnings that arises in Nigeria is taxable for non-residents,” he mentioned.
“Distant employees are taxed primarily based on the principles within the nation the place they’re resident or earn such earnings, not merely the place fee is made.”
For Nigerians labeled as tax residents, nonetheless, worldwide earnings applies — topic to reliefs, allowances, and exemptions underneath Nigerian regulation.
What it is best to know
- Final month, Oyedele disclosed that the tax reform legal guidelines had been formally printed within the authorities gazette, marking a serious step in overhauling the nation’s fiscal framework.
- The reforms, signed into regulation on June 26, 2025, set up a brand new basis for taxation, administration, and income assortment in Africa’s largest economic system.
- The 4 new legislations are the Nigeria Tax Act (NTA), 2025; the Nigeria Tax Administration Act (NTAA), 2025; the Nigeria Income Service (Institution) Act (NRSEA), 2025; and the Joint Income Board (Institution) Act (JRBEA), 2025.
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