Nigeria: New Tax Remittance Requirement for Residence Permit Renewals

April 15, 2021

Overview

On March 31, 2021, the Comptroller-General of the Nigerian Immigration Service (CGNIS) announced that foreign nationals working in Nigeria will be required to provide evidence of tax remittance to Nigerian tax authorities as a prerequisite for renewing their residence permit.

Key Points

The CGNIS declared that all foreign nationals earning a salary while working in Nigeria must pay taxes, no matter the length of their contracted stay.

Under the Personal Income Tax Act (PITA), employers are responsible to deduct and remit taxes on behalf of their foreign national employees.

The rules and regulations of the Personal Income Tax Act apply to all provinces of Nigeria.

What Are the Changes?

While employers in Nigeria have historically been responsible for deducting and remitting their employees’ taxes, foreign nationals have not previously been required to provide taxes as part of their residence permit applications. Contracted foreign nationals working in Nigeria will now only be able to renew their residence permits if they provide evidence of their tax remittance to Nigerian tax authorities.

Looking Ahead

This new initiative comes as a result of the Nigerian government combatting tax evasion. Employers should take care and do their due diligence to ensure accurate deduction and remittance of fees and taxes on behalf of their foreign national employees and maintain organized records.

Content in this publication is not intended as legal advice, nor should it be relied on as such. For additional information on the issues discussed, consult an Envoy-affiliated attorney or another qualified professional

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