Nigeria Introduces New Residency Rules for Tax Payment

Nigeria has implemented new tax laws to define residency status for individuals, aiming to reduce uncertainty and make it easier to determine tax obligations. The legislation specifies that individuals who are considered residents must meet certain criteria, including being domiciled in Nigeria, maintaining a permanent home in the country, and spending at least 183 days in Nigeria.

The law covers worldwide income but avoids double taxation through treaties. The reform exempts low-income earners and small businesses to ease financial burdens and encourage tax compliance.