Nigeria Tax Act 2026: Key Changes for Remote Workers

The Nigeria Tax Act, which takes effect on January 1, 2026, introduces important changes for remote workers and small businesses. The Act raises the tax-exempt threshold to 800,000 Naira for individuals, allowing entry-level remote workers to keep all their earnings.

The reforms are part of a broader initiative by the Nigeria Revenue Service to modernize and streamline tax administration. According to PwC Nigeria's global tax summary, the new law clarifies tax residency rules, meaning that remote workers will be taxed on their worldwide income, including foreign currency payments.

Additionally, small companies with a turnover of less than 100 million Naira will be exempt from corporate income tax. The reforms also include provisions for tax relief on severance packages, increasing the exempt amount from 10 million to 50 million Naira.

Overall, the 2026 tax reforms aim to simplify compliance and support the growing digital economy in Nigeria.