In response to widespread questions from Nigerians living overseas, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has provided detailed explanations on how the newly enacted tax reform laws will affect diaspora Nigerians. The clarifications cover key concerns about Tax Identification Numbers (TIN), tax filing obligations, remittances, and residency status.
Oyedele emphasized that Nigerians residing abroad are not required to obtain a TIN or file annual tax returns in Nigeria unless they derive income from Nigerian sources, such as employment or business operations within the country.
“A TIN is only necessary if you earn employment or business income from Nigeria. Otherwise, non-residents without Nigerian-source income are exempt from tax filing,” he explained. He also noted that opening or maintaining a bank account does not require a TIN unless the account is used for business or income purposes.
On concerns about double taxation, Oyedele assured that income earned abroad and sent home is not subject to Nigerian tax, regardless of whether it was taxed in the country where it was earned. Nigeria’s existing Double Taxation Agreements (DTAs) with various countries, along with new relief provisions for countries without DTAs, are designed to prevent double taxation of the same income.
Addressing the taxation of remittances, the chairman clarified that personal transfers such as family support, gifts, refunds, or community contributions are not taxable under the new laws. Only earnings considered income such as wages, business profits, or investment returns will be subject to tax.
Regarding tax residency, Oyedele highlighted the use of the 183-day rule, which assesses whether an individual has spent at least 183 days physically in Nigeria within a 12-month period. Only residents who meet this criterion are liable to pay tax on their worldwide income. Non-residents are taxed solely on income derived from Nigerian sources, such as rental income or dividends. He added that dual citizenship status does not influence tax obligations.
The new tax laws also provide clarity on pensions and remote work earnings. Pensions and stipends received from abroad are exempt from Nigerian tax unless they are linked to work performed within Nigeria. Similarly, income earned by remote workers will be taxed according to the laws of the country in which they reside or earn their income, not merely based on payment location.
Oyedele reiterated that Nigerians classified as tax residents in Nigeria will continue to be taxed on their global income but with applicable allowances, exemptions, and reliefs provided under Nigerian law.
The tax reforms, signed into law on June 26, 2025, and officially published last month, represent a significant overhaul of Nigeria’s fiscal framework. The four key legislations involved include the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service (Establishment) Act (NRSEA), and the Joint Revenue Board (Establishment) Act (JRBEA), 2025.
The government has also worked to streamline compliance through digital platforms like TaxProMax, simplifying TIN applications and tax filing processes for Nigerians both at home and abroad.
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