Diaspora Nigerians won’t be taxed on remittances, foreign income – FG clarifies 

Many Nigerians living abroad have expressed worry over the country’s new tax reform laws and how they might affect money transfers, dual citizenship, and overseas income.

However, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has cleared the air, saying diaspora remittances and foreign-earned income will not be taxed under the new law.

In an interview with Channels Television, Oyedele addressed several frequently asked questions that have dominated online discussions among Nigerians in the diaspora.

He explained that personal remittances, such as money sent home for family support, gifts, or projects are not considered taxable income.

“Genuine personal transfers such as family remittances, gifts, or community savings contributions are not treated as taxable income,” he said. “Only income earned or deemed to be income, like wages, business profits, or investment returns is subject to tax.”

Oyedele also dismissed fears of double taxation, assuring that Nigerians working abroad will not be taxed twice — both abroad and in Nigeria — on the same income.

“Income earned abroad and brought into Nigeria by a non-resident individual is now specifically exempted from tax in Nigeria,” he clarified. “In addition, Nigeria has Double Taxation Agreements (DTAs) with several countries to prevent such cases.”

According to Oyedele, tax residency is determined by the 183-day rule, meaning only those who spend more than 183 days in Nigeria within a 12-month period will be considered tax residents.

“Non-residents are taxed only on income derived from Nigeria, such as rental income, dividends, or business profits,” he said. “Dual citizenship does not affect anyone’s tax status.”

Oyedele explained that most government-backed investments, such as bonds and Sukuk, remain tax-exempt, while income from private investments like rental income and dividends attract withholding tax at 10 percent, which can be reduced to 7.5 percent for investors from certain countries including the UK, South Africa, and China.

He added that pensions and stipends from abroad will not be taxed in Nigeria unless they are payments for work done within the country.

“Remote workers are taxed based on the country where they are resident or earn such income, not merely where payment is made,” he noted.

Addressing concerns about Tax Identification Numbers (TINs), Oyedele said Nigerians abroad do not need a TIN or to file annual tax returns unless they have income sourced from Nigeria.

“There’s no requirement to file tax returns unless you earn employment or business income from Nigeria,” he said. “Non-residents without Nigerian-source income are not obliged to file returns.”

Oyedele assured that simplified online channels, such as TaxProMax, have been created to make compliance easy for those who fall under taxable categories.

The clarification comes amid widespread confusion on social media, where many Nigerians abroad had feared their family remittances could soon be taxed under the government’s fiscal reforms.