Nigeria has stepped up its plans to tax income earned abroad by remote workers and online professionals. The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, disclosed that Nigeria has signed agreements with over 100 countries, including the US, UK, Canada, and the UAE (Dubai), to automatically exchange financial information.
This framework, primarily based on the Common Reporting Standards (CRS), allows Nigerian authorities to track foreign deposits and properties of its tax residents. Under the new law, all Nigerians receiving income from international companies or online platforms must self-declare their foreign earnings, as the system will now monitor the money once it enters their bank accounts.
The government’s new strategy blends self-reporting by taxpayers with enhanced global intelligence gathering. Nigeria is a signatory to the Multilateral Competent Authority Agreement (MCAA) on the CRS, which facilitates the automatic, annual exchange of financial account information (like bank balances and account owner details) with over 100 partner jurisdictions.
Oyedele emphasized that the system provides authorities with data about Nigerians who have money and properties abroad, ensuring transparency.
Remote workers, freelancers, and digital earners are mandated to self-declare their foreign income in Naira for Personal Income Tax (PIT) purposes. Failure to do so may lead to the issuance of presumptive assessments with added penalties and interest.
For individuals, the new tax laws taking effect in January 2026 will apply the tax based on progressive personal income tax rates (ranging from 0% to 25% for high earners), replacing the flat rate approach.
