Taxation of Non-Resident Companies in Nigeria (Part 1)

Taxation of Non-Resident Companies in Nigeria (Part 1)

It is no news that the Non-Resident Companies (NRCs) have been on the FIRS’ watchlist to drive revenue generation in Nigeria. Prior to the creation of the Non-Resident Persons Tax Office (NRPTO) as a separate department, the tax laws have had specific provisions for income generated by NRCs in Nigeria and as such, tax compliance by NRCs in Nigeria has been ever present. However, following the amendments by the Finance Act 2019 and creation of the NRPTO department at the FIRS, there has been an increase in tax compliance for NRCs receiving income from Nigeria which includes NRCs with significant economic presence (SEP) in Nigeria, providing management, professional and technical services in Nigeria etc.

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