Federal Internal Revenue Service (FIRS) has released guidelines on a simplified compliance regime for value added tax for non-resident suppliers (The Guidelines). The Guidelines clarify the obligations and procedures for value added tax (VAT) compliance by non-resident suppliers (NRS) supplying goods, services, or intangibles to persons in Nigeria through electronic platforms. The effective date is…
The Federal Inland Revenue Service (FIRS) has issued guidance on the taxation of non-residents in Nigeria. FIRS Information Circular No. 2021/07 of 3rd June 2021 provides information on the Nigerian tax laws for non-residents (individuals or corporate) and their liability to taxes in Nigeria. It covers residence, non-residents, withholding tax, capital gains tax, jurisdiction, filing…
FIRS recently issued self-certification forms for foreign residents with bank accounts in Nigeria. The new documentation is further to the Income Tax Regulation 2019. Nigeria has an agreement with 109 jurisdictions to share bank account information of non-resident persons in the country. The Income Tax (Common Reporting Standard) Regulation 2019 requires all Financial Institutions to…
Nigeria has a tax treaty or double taxation agreement (DTA) with 16 countries. A tax treaty is a bilateral agreement between two countries that helps to settle issues on double taxation. Four (4) legislation on income tax already contains rules on double taxation relief. They are Sections 45 and 46 of the Companies Income Tax…
The income of a person or company will be liable to tax in Nigeria based on residence. A local business that generates all its profits in the country is, thus, a tax resident in Nigeria. Yet, foreign individuals and companies outside Nigeria also derive income or profits from Nigeria. Will this category of taxpayer be…
Each country has its own tax laws. Nigeria, for instance, adopts the residency principle while some countries apply the source principle in deciding whether a taxpayer will pay tax in that jurisdiction. Hence, if a business is tax resident in Nigeria and generates income or profit in the United States, this could lead to double…
Global mobility will be easier if employment tax rates are the same in every country. Well, it isn’t! The tax liability of an employee often changes during an international assignment. If an expatriate is tax resident in a foreign country, such income will be taxable. Likewise, an expatriate may still attract tax and/or social security…