The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms has clarified how Nigeria’s new tax laws apply to citizens living abroad, addressing rising concerns over tax filing, remittances, TIN requirements and residency rules.
He explained that Nigerians in the diaspora are not required to obtain a Tax Identification Number or file annual tax returns in Nigeria unless they earn income from Nigerian sources such as employment, business operations or investments based in the country.
According to him, “a TIN is not required, and there is no obligation to file tax returns unless you earn employment or business income from Nigeria.”
He further clarified that maintaining a Nigerian bank account does not require a TIN unless the account is tied to business income or commercial transactions. Personal savings and remittance accounts remain unaffected.
On fears that money sent home could be taxed, he stated that income earned abroad and transferred to Nigeria will not be taxed again. He said such earnings are specifically exempt under the new framework, irrespective of whether tax was paid overseas.
Nigeria’s double taxation agreements with other countries, alongside new relief provisions, are designed to prevent the same income from being taxed twice.
The clarification followed numerous inquiries from diaspora Nigerians seeking to understand their obligations under the reformed tax system.
“Many Nigerians in the diaspora have raised questions regarding the new tax reform laws and their possible implications,” he noted, explaining that the guidance was issued to address frequent concerns.
He also confirmed that personal transfers, including family support, gifts and community contributions, are not considered taxable income. Only income classified as earnings, such as wages, profits or investment returns, will be subject to assessment, with tax authorities expected to release detailed guidelines to distinguish between taxable and non-taxable inflows.
On residency, he reiterated that tax status is based on physical presence, guided by the 183-day rule. Non-residents will only be taxed on income derived from Nigeria, such as rent, dividends or local business profits.
Dual citizenship, he added, does not affect this status, and diaspora workers are not taxed on foreign employment or business income.
He also addressed pensions, stipends and remote work income, noting that pensions or stipends from abroad are not taxable unless they arise from services rendered in Nigeria.
Remote workers are taxed according to the jurisdiction where the work is performed, not where the payment is received.
However, Nigerians who qualify as tax residents under the 183-day rule will be assessed on global income but granted reliefs and exemptions available under Nigerian law.
The clarification comes as the federal government implements four major legislations signed into law on June 26, 2025, which overhaul the tax administration system.
These laws form the new foundation for taxation, revenue collection and fiscal policy in Africa’s largest economy.
