Impact Of New Tax Reform Laws On Nigerians In Diaspora

Contributing sentiments towards policy:

58% : Diaspora Nigerians living abroad who are not tax resident in Nigeria are not taxed on their foreign employment or business income.
57% : 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, for instance those who reside in countries with no personal income tax.
55% : The reforms mandate transparency measures, including public reporting, governance structure and independent oversight for tax revenues.
51% : Generally, income from investments in Nigeria are either exempt, subject to capital gains tax (CGT) or withholding tax as a final tax.
50% : Only income earned or deemed to be income (e.g., wages, business profits, investment returns) is subject to tax.
48% : Every individual is required to self-report their income and pay tax where applicable.
48% : How is tax residency determined, and will non-residents with Nigerian assets or accounts be taxed?
48% : Dividends, non-government bond interest and rental income are subject to withholding tax at 10% as final tax which may be reduced to 7.5% for recipients in certain countries such as the UK, South Africa and China.
48% : Other fiscal measures are being strengthened to link tax revenues to visible infrastructure and service delivery with safeguards against corruption and framework to prevent and punish misuse of taxpayer data.
47% : Tax authorities are expected to issue guidelines on how to distinguish taxable from non-taxable inflows.
47% : A TIN is not required and there is no requirement to file tax returns unless you earn employment or business income from Nigeria.
46% : Incentives under the new laws apply generally to certain investments including diaspora-led investments in key sectors (e.g., priority sector incentives in agriculture, creative sector, manufacturing, etc), SME corporate tax exemption threshold, exemption of VAT on real estate, etc. Key Takeaway: The reforms make the tax system in Nigeria fairer and more friendly to Nigerians in the diaspora, address incidence of double taxation, align Nigeria with global best practice, simplify and provide clarity where tax is payable or filing obligation is applicable.
45% : How will the government ensure accountability in the use of taxes collected?

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