Living Abroad but Earning Income From Nigeria? You May Still Need to File a Tax Return

Nigeria’s tax reforms have made this a point worth understanding, particularly for Nigerians in the diaspora, foreign-based professionals, consultants, investors and businesses operating across borders.

What Does the Law Say?

Section 13 of the Nigeria Tax Administration Act 2025 requires non-resident persons who are liable to tax in Nigeria under the Nigeria Tax Act 2025 to file income tax returns. The requirement applies from the new tax framework’s commencement on 1 January 2026, subject to the relevant transitional rules. and .

The important detail is that not every payment received from Nigeria automatically creates a tax filing obligation. The type of income, how it was earned, where the relevant activities took place and the applicable provisions of the law all matter.

For example, a non-resident earning income from business activities carried out in Nigeria may have different obligations from someone who receives a payment from a Nigerian client for services performed entirely abroad. The correct treatment depends on the specific facts and the relevant tax rules.

Which Income Could Create a Nigerian Tax Obligation?

The Nigeria Tax Act 2025 sets out rules for determining when income is treated as derived from Nigeria. These rules cover different types of income, including employment, business profits and other taxable income.

For employment income, the location where duties are performed, the employee’s residence and the employer’s circumstances can affect whether the income is taxable in Nigeria. Business income may also be taxable where the relevant business activities or taxable presence connect the profits to Nigeria.

This means that living abroad is not enough, on its own, to determine whether you have a Nigerian tax obligation. Equally, having a Nigerian customer or receiving money from a Nigerian bank account does not, by itself, settle the question.

Non-resident companies also need to assess their position under the applicable corporate tax and filing rules. Their obligations may differ from those of non-resident individuals, so the two should not be treated as the same case.

What If Tax Has Already Been Deducted?

Some payments to non-residents may be subject to withholding tax at source. However, seeing tax deducted from a payment does not automatically answer every question about your filing obligations.

You need to establish what the deduction covers, whether it represents the final tax treatment for that income and whether any further return or documentation is required under the applicable rules.

Keep contracts, invoices, payment records, withholding tax certificates and documents showing where work was performed. These records can help you determine how the income should be treated and support your position if the tax authority requests further information.

Do You Need to File If You Live Abroad?

Start by identifying the income you received, where it arose, the nature of the work or transaction and whether Nigerian law treats you as liable to tax on it. If you have income from multiple sources, assess each source rather than assuming that one payment determines your entire tax position.

Where a filing obligation applies, Section 13 sets out the information required in the return, including income details, tax computation and evidence of payment of tax due. The appropriate filing process will depend on the taxpayer and the relevant tax authority.

If you are unsure how the rules apply to your circumstances, seek advice from a qualified tax professional familiar with cross-border taxation.

Keep Your Records in Order

Cross-border income can involve different currencies, clients, contracts and tax systems. Keeping clear records makes it easier to identify what you earned, where the income came from and what tax may already have been paid.

LessaTax helps freelancers, remote workers, consultants and small business owners organise income records, expenses, invoices, receipts and supporting documents throughout the year. That groundwork can make it easier to understand your tax position and prepare for your filing obligations when they apply.

Visit lessatax.ng⁠ to learn more about keeping your financial records organised.