Nigerians abroad won’t be taxed on foreign income, remittances – Oyedele

From Uche Usim, Washington DC

Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has cleared the air on how Nigeria’s new tax reform laws affect citizens living abroad, allaying concerns about tax filing, remittances and residency rules.

In a detailed Q&A issued to address questions from Nigerians in the diaspora, Oyedele explained that citizens living overseas are not required to obtain a Tax Identification Number (TIN) or file annual tax returns in Nigeria unless they earn income from sources within the country.

“A TIN is not required, and there is no requirement to file tax returns unless you earn employment or business income from Nigeria,” he clarified.

According to him, non-residents without Nigerian-source income are completely exempt from such obligations, and the process has been simplified for those who do need to comply. “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.

Oyedele emphasized that Nigerians abroad will not face double taxation or be taxed on funds they send home. “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,” he said.

He noted that Nigeria’s Double Taxation Agreements (DTAs) with several countries, alongside new relief measures for nations without DTAs, provide adequate protection to ensure that the same income is not taxed twice.