Nigeria: Federal Inland Revenue Service adopted Information Circular No. 2022/12 on taxation of non-residents in Nigeria

On 11 April 2022, the Federal Inland Revenue Service (FIRS) adopted Information Circular No. 2022/12 on taxation of non-residents in Nigeria. According to the circular, non-resident companies in Nigeria, which are those established outside the country, are taxed only on income derived from Nigeria. This includes having a fixed base, habitual operations through a local agent, conducting digital activities, single contracts for specific services, and providing technical or professional services to Nigerian residents. Passive income like dividends and rents is also taxable, with withholding tax deducted at source. These companies must file annual self-assessment returns and pay a 10% capital gains tax on asset disposals. Non-compliance can lead to penalties.