Nigerians living abroad-whether remote employees, retirees, or students-will not be taxed on income earned outside Nigeria. This was confirmed by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Reforms Committee.
In a recent Twitter post, Oyedele addressed common concerns by clarifying that pensions, stipends, and earnings from remote work for Nigerians overseas are exempt from Nigerian taxation. This announcement aims to dispel uncertainties surrounding the new tax-calculator/” title=”Tinubu Launches Innovative Personal … Calculator to Simplify Your …es!”>tax regulations, affirming that Nigeria will only tax income generated within its borders by non-resident citizens.
His explanation is grounded in the principle of tax jurisdiction, which states that a non-resident’s tax liability depends on where the income is legally sourced, not merely where the individual receives the payment.
“Only income originating from Nigeria is subject to tax for non-residents. Foreign pensions and stipends are not taxable unless they relate to work performed in Nigeria. Remote workers are taxed according to the tax laws of the country where they reside or earn their income, not just where payments are made.”
“For residents, taxation applies to global income, with applicable reliefs, allowances, and exemptions such as thresholds for low earners,” he added.
These reforms aim to create a fairer tax environment for Nigerians abroad, prevent double taxation, align Nigeria’s tax system with international standards, and simplify compliance by clearly defining tax obligations.
Read also: Understanding the new tax regime: All you need to know
What This Means for Nigerians Abroad
This clarification holds particular importance for the expanding community of remote workers and retirees overseas. Oyedele outlined key points:
- Remote workers’ tax responsibilities are governed by the country where they live or perform their work, preventing the complications and double taxation risks that a global tax claim could cause.
- Pensions paid in foreign currencies and stipends received while studying abroad remain fully exempt from Nigerian tax, provided these funds are not compensation for services rendered within Nigeria.
By clearly defining these geographic and operational boundaries, the committee has established a transparent and consistent policy framework that addresses a major concern for Nigerians living overseas.
Read also: How to calculate your income tax as a Nigerian freelancer and remote worker
No Double Taxation on Foreign Earnings and Tax-Exempt Remittances
Oyedele also confirmed that money sent home as remittances will not be treated as taxable income under the new tax laws. This exemption covers genuine personal transfers such as funds sent for family support, gifts, or community contributions.
He emphasized that only active income-such as salaries, business profits, or investment returns-will be subject to taxation. The government plans to issue detailed guidelines to help taxpayers distinguish between taxable income and exempt transfers.
The Chairman reassured Nigerians abroad that double taxation will be avoided. He stated that non-resident individuals will not be taxed twice on the same income.
Income earned overseas and brought into Nigeria by non-residents is explicitly exempt from Nigerian tax, regardless of whether it was taxed abroad.
Moreover, even in the absence of a Double Taxation Agreement (DTA) with a foreign country, the new regulations provide unilateral relief to prevent the same income from being taxed twice.
This provision addresses a significant concern for the diaspora community.
Clear Residency Criteria and Simplified Filing for Nigerians Abroad
Oyedele further clarified how tax residency is determined, simplifying compliance for Nigerians overseas. Residency is based on the “183-day rule,” which counts the total days an individual spends physically in Nigeria within a 12-month period.
Non-residents are therefore liable only for income sourced within Nigeria, such as rental income or dividends. He also noted that holding dual citizenship does not affect whether someone is classified as a resident or non-resident for tax purposes.
Importantly, the requirement to obtain a Tax Identification Number (TIN) and file annual tax returns has been relaxed for Nigerians living abroad.
Oyedele explained that non-residents do not need a TIN and are not required to file returns unless they earn employment or business income sourced from Nigeria. The same leniency applies to bank accounts: a TIN is only necessary if the account is used for business or income purposes.
Finally, the Chairman assured that the reforms include measures for transparency, public accountability, and independent oversight to ensure tax revenues are linked to visible infrastructure and service improvements, with strong anti-corruption safeguards.
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