The new tax reform acts, which were recently signed into law by President Bola Tinubu, have brought the earnings of remote workers in Nigeria within the tax bracket.
Under the new provisions, individuals who work for foreign clients or companies, including freelancers, tech professionals, and digital entrepreneurs, are required to register with their state tax authorities, declare their foreign earnings in naira, and pay the appropriate taxes, just like every other Nigerian income earner.
The COVID-19 pandemic catalysed the transition to remote work. In mid-2021, nearly 70 per cent of companies in sectors like tech and finance adopted some form of remote or hybrid model, according to McKinsey, and the World Economic Forum has projected that there will be 92 million remote jobs by 2030.
PwC, a multinational professional services network, known for its audit, assurance, tax, and advisory services, in their analysis of the new taxes, stated that Personal Income Tax “will apply to the worldwide income of a resident individual, which is now clearly defined in the new Act.
