Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that Nigerians living abroad are not required to obtain a Tax Identification Number or file tax returns in Nigeria unless they earn income from Nigerian sources.
In a statement addressing concerns raised by Nigerians in the diaspora over the country’s new tax reform laws, Oyedele explained that the filing requirement applies only to individuals with income from employment or business operations within Nigeria.
“A TIN is not required, and there is no requirement to file tax returns unless you earn employment or business income from Nigeria,” he said.
He added that non-residents without income originating from Nigeria are exempt, noting that the Federal Government has simplified compliance through online platforms such as TaxProMax and an easier TIN registration process.
“A TIN is also not required to open or maintain a bank account unless the account is for business purposes or income receipts,” he added.
The tax reform chairman also dismissed concerns over double taxation, saying that income earned abroad and later sent home would not be taxed again.
“Income earned abroad and brought into Nigeria by a non-resident individual is now specifically exempted from tax in Nigeria, regardless of whether tax was paid abroad or not,” Oyedele explained.
He noted that Nigeria’s Double Taxation Agreements with several countries, as well as new relief provisions for nations without such agreements, ensure that citizens are not taxed twice on the same income.
On remittances, Oyedele assured that personal transfers and family support payments remain tax-free under the new framework.
“Genuine personal transfers such as family remittances, gifts, refunds, or community savings contributions are not treated as taxable income,” he said, adding that only income earned or deemed to be income—such as wages or investment returns—would attract tax.
He further explained that tax residency in Nigeria is determined by the 183-day rule, which assesses how long an individual stays in the country within a 12-month period.
“Non-residents are taxed only on income derived from Nigeria, such as rental income, dividends, or business profits,” he clarified.
Oyedele also said pensions and stipends from abroad are not taxable in Nigeria unless they arise from work performed in the country.
“Only income that arises in Nigeria is taxable for non-residents,” he noted. “Remote workers are taxed based on the rules in the country where they are resident or earn such income, not merely where payment is made.”
