If you spend 183 days or more (about 6 months) in Nigeria during a tax year, you are classified as a tax resident in Nigeria. You will be taxed on all income earned worldwide.
Via Proshare:
Tax Residency Rule
- If you spend 183 days or more (about 6 months) in Nigeria during a tax year, you are classified as a tax resident in Nigeria. You will be taxed on all income earned worldwide.
- If you spend less than 183 days in Nigeria, you are not a Nigerian tax resident. You only pay tax on income sourced from Nigeria (e.g., rental property income, dividends).
Dual Citizenship
Holding another country’s passport (e.g., American, British, Canadian) does not exempt you from Nigerian tax rules. Tax is based on residency and income source, not nationality.
Double Taxation
- If both Nigeria and your country of residence tax the same income, you can claim a tax credit in Nigeria for taxes already paid abroad.
- Nigeria has about 12 Double Tax Treaties (DTTs). Where treaties exist, double taxation is eliminated.
- If no treaty exists, Nigeria allows a unilateral tax credit to reduce double taxation.
Key Obligations for Nigerians Abroad
- Track your days spent in Nigeria each year to determine residency status.
- Declare Nigerian-sourced income (property rent, dividends, local investments).
- Keep records of taxes paid abroad to support claims for tax credits.
- Seek professional tax advice if you have significant global income or dual tax obligations.
Summary:
- Stay in Nigeria 183+ days → Pay tax on global income in Nigeria.
- Stay in Nigeria less than 183 days → Pay tax only on Nigeria-based income.
- Use treaties or credits to avoid double taxation.