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    Residency

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    whit.ehouseboyquantium
    An individual is considered a tax resident of Nigeria if they are domiciled in Nigeria, spend at least 183 days in a 12-month period in Nigeria, have a permanent place of residence in Nigeria, or serve as a Nigerian diplomat abroad. Companies incorporated in Nigeria under the Companies and Allied Matters Act are considered resident for tax purposes. Resident companies are taxed on their worldwide profits in Nigeria regardless of where profits are earned. Non-resident companies are taxed in Nigeria if they have a fixed base, operate through a person in Nigeria, derive income through digital activities, conduct single contracts, provide remote services, or conduct non-arm's length transactions with a related Nigerian party. NGOs and diplomats

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    Residency

    Uploaded by

    whit.ehouseboyquantium
    17 views2 pages
    An individual is considered a tax resident of Nigeria if they are domiciled in Nigeria, spend at least 183 days in a 12-month period in Nigeria, have a permanent place of residence in Nigeria, or serve as a Nigerian diplomat abroad. Companies incorporated in Nigeria under the Companies and Allied Matters Act are considered resident for tax purposes. Resident companies are taxed on their worldwide profits in Nigeria regardless of where profits are earned. Non-resident companies are taxed in Nigeria if they have a fixed base, operate through a person in Nigeria, derive income through digital activities, conduct single contracts, provide remote services, or conduct non-arm's length transactions with a related Nigerian party. NGOs and diplomats

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    residency

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    An individual is considered a tax resident of Nigeria if they are domiciled in Nigeria, spend at least 183 days in a 12-month period in Nigeria, have a permanent place of residence in Nigeria, or serve as a Nigerian diplomat abroad. Companies incorporated in Nigeria under the Companies and Allied Matters Act are considered resident for tax purposes. Resident companies are taxed on their worldwide profits in Nigeria regardless of where profits are earned. Non-resident companies are taxed in Nigeria if they have a fixed base, operate through a person in Nigeria, derive income through digital activities, conduct single contracts, provide remote services, or conduct non-arm's length transactions with a related Nigerian party. NGOs and diplomats

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    17 views2 pages

    Residency

    Uploaded by

    whit.ehouseboyquantium
    An individual is considered a tax resident of Nigeria if they are domiciled in Nigeria, spend at least 183 days in a 12-month period in Nigeria, have a permanent place of residence in Nigeria, or serve as a Nigerian diplomat abroad. Companies incorporated in Nigeria under the Companies and Allied Matters Act are considered resident for tax purposes. Resident companies are taxed on their worldwide profits in Nigeria regardless of where profits are earned. Non-resident companies are taxed in Nigeria if they have a fixed base, operate through a person in Nigeria, derive income through digital activities, conduct single contracts, provide remote services, or conduct non-arm's length transactions with a related Nigerian party. NGOs and diplomats

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    © All Rights Reserved
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    Download as docx, pdf, or txt
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    CONCEPT OF RESIDENCY FOR TAX PURPOSES

    SECTION I – CRITERIA FOR INDIVIDUALS TO BE CONSIDERED A


    TAX RESIDENT

    An individual is tax-resident in Nigeria throughout an assessment year if that


    individual:

    a. Is domiciled in Nigeria;
    b. Sojourns in Nigeria for a period or periods, in all, amounting to an aggregate of
    183 days or more in a 12-month period (inclusive of annual leave or temporary
    period of absence);

    c. Has a permanent place available for his domestic use in any part of Nigeria;
    d. Serves as a diplomat or diplomatic agent of Nigeria in another country.
    SECTION II – CRITERIA FOR ENTITIES TO BE CONSIDERED A TAX
    RESIDENT
    A company is considered resident in Nigeria if such a company is registered or
    incorporated under the Companies and Allied Matters Act.
    RESIDENT COMPANY AND LIABILITY TO TAX:
    According to Section 13(1) of the Companies Income Tax Act (CITA) CAP. C21,
    LFN 2004 (as amended), the profits of a Nigerian company are liable to tax in
    Nigeria irrespective of where the profits have arisen and whether or not they have
    been brought into or received in Nigeria. As such, the failure of a Nigerian
    company to repatriate profits made from abroad does not prevent such profits from
    being taxed in Nigeria.
    TAX LIABILITY OF NON-RESIDENT COMPANIES IN NIGERIA:
    Every company, resident or non-resident, is liable to companies income tax (CIT)
    in Nigeria where the profits accrue in or are derived from, brought into or received
    in Nigeria.
    In accordance with the provisions of section 13(2) of CITA, a non-resident
    company is taxable in Nigeria if any of the following conditions is met:
    i) the non-resident company has a fixed base (i.e. a place of business) in
    Nigeria to the extent that the profit is attributable to the fixed base;
    ii) ii) the non-resident company habitually operates a trade or business through
    a person in Nigeria or maintains a stock of goods or merchandise in Nigeria
    from which deliveries are regularly made by a person on behalf of the
    company;

    iii) iii) the non-resident company does not have physical presence in Nigeria
    but derives income from Nigeria through digital activities to the extent that
    it has a “significant economic presence” in Nigeria;
    iv) the trade or business or activities of the non-resident involves a single contract
    for surveys, deliveries, installations or construction;
    v) the trade or business of the non- resident involves the remote provision of
    technical, management, consultancy or professional services to a Nigerian resident;

    vi) The trade or business or activities is between the company and a related party,
    which is considered not to be at arm’s length.
    SECTION III – ENTITY TYPES THAT ARE AS A RULE NOT
    CONSIDERED TAX RESIDENTS
    NGOs

    Diplomats

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