Foreign companies employing Nigerians to work remotely will no longer be deemed taxable in the country solely on the basis of having remote employees, following clarifications contained in Nigeria’s ongoing tax reform programme. The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, announced this during a virtual engagement with human resources professionals, chief financial officers and tax managers organised in collaboration with the Joint Revenue Board.
“Foreign employers are no longer deemed taxable in Nigeria solely because they have employees working remotely in the country,” Oyedele stated via his verified X handle. He explained that the reform is designed to make Nigeria more competitive in the global labour market while removing uncertainties that have discouraged foreign firms from hiring Nigerian talent, aligning the nation’s tax framework with global best practices on remote work and permanent establishment.
The engagement session, which attracted nearly 15,000 registered participants, focused on implementing the recently enacted Tax Reform Acts. Oyedele highlighted several worker-friendly provisions including automatic personal income tax exemptions for individuals earning the national minimum wage or less, and potential zero tax liability for employees earning up to ₦100,000 per month when allowable deductions are applied.
The reforms also exempt the first ₦800,000 of taxable income and provide rent relief of 20 percent of actual rent paid capped at ₦500,000. “To preserve fiscal federalism, all revenue agencies will work together under the Joint Revenue Board to ensure a harmonised and seamless experience for taxpayers,” Oyedele said.
Employers must file annual PAYE returns by January 31, while individual self-assessment returns are due by March 31. Stakeholders say the clarification could help attract foreign investment and boost employment opportunities for Nigerians.