Nigeria has entered into agreements with more than 100 countries to track the income of Nigerians who work remotely or earn money online. This development was revealed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, during a webinar organised by the National Orientation Agency aimed at simplifying Nigeria’s tax landscape.
Under the updated tax framework, all Nigerians who receive payments from international companies or digital platforms are required to declare their foreign income. This includes earnings from major tech platforms such as Google, as well as smaller foreign firms contracting Nigerian freelancers and remote workers.
According to Oyedele, tax authorities can now detect overseas income once it enters a Nigerian bank account:
“Everyone earning from abroad must declare their income. If you fail to do so, the system will track the money once it enters your bank account.”
He explained that Nigeria’s expanded access to financial data is enabled through global collaborations under the Common Reporting Standards (CRS). Partner countries mentioned include the US, UK, Canada, and the UAE (Dubai), where Nigerian-owned accounts and properties can now be monitored for compliance.
Automatic Data Sharing and Presumptive Tax Assessments
The new system combines taxpayer self-reporting with automated intelligence gathering from partner nations. If foreign income is not voluntarily disclosed, the government can issue presumptive tax assessments based on financial inflows.
This transparency-driven mechanism is expected to tighten tax compliance and ensure that income entering Nigeria is traceable and appropriately taxed.
FG Works With Tech Companies to Improve VAT Collection
Oyedele also revealed that the committee has been engaging global tech companies to resolve longstanding gaps in VAT collection. Previously, physical businesses paid VAT, while international digital service providers operated without equivalent tax obligations.
“We spoke with tech firms to understand their concerns and reached agreements that now allow Nigeria to collect billions in taxes from digital platforms,” he said.
Despite progress, inconsistencies remain in the new tax laws. For instance, Section 147 of the Nigerian Tax Administration Act pegs the turnover threshold at ₦100 million, while Section 202 of the Tax Act sets it at ₦50 million. The discrepancy arose during gazetting, but amendments are expected in 2026.
Capital Gains Tax: New Rules Take Effect January 1, 2026
From January 1, 2026, revised Capital Gains Tax (CGT) rules will become operational. Key provisions include:
- Investments made before 2026 will not be taxed on gains.
- A cost-basis reset will occur.
- Only profits generated from 2026 onwards will be subject to CGT.
- Transitional clauses will ensure a smooth shift to the new framework.
These changes aim to create a fairer, more transparent taxation system for investors and digital earners.
