Nigeria’s new tax law brings changes that impact Nigerians abroad, affecting areas like stocks and real estate. The reforms aim to create a fairer and more diaspora-friendly tax system.
Nigerians living abroad will pay taxes on income earned in Nigeria, including rental income from properties. However, dividends from shares in Nigerian companies remain tax-free if the shareholder is a non-resident. Capital gains tax applies to property sales, but exemptions exist for individuals selling their primary residence.
The law introduces a 10% tax on gains from unlisted securities and a 0.5% tax on turnover for companies with over ₦100 billion turnover. To avoid double taxation, foreign tax credits will be available, and agreements with other countries will be prioritized.
Key changes include taxes on Nigerian-sourced income for diaspora Nigerians, tax-free dividends from Nigerian shares for non-residents, and capital gains tax exemptions for primary residence sales.
Nigerians in the diaspora are not required to obtain a Tax Identification Number or file annual tax returns unless they earn income from Nigerian sources. Income earned abroad and transferred to Nigeria will not be taxed again, and personal transfers, including family support and gifts, are not considered taxable income.
The reforms aim to boost revenue, promote fairness, and encourage voluntary compliance. The government plans to invest in technology and taxpayer education to improve the tax system.
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