Taxation of Non-Resident Companies in Nigeria

A company in Nigeria, whether resident or non-resident, is subject to taxation if its income falls within the scope of the
Companies Incomes Tax Act. It is important to note that Nigerian tax laws do not exempt the income of a branch of a business or company from taxation. While a Nigerian company is taxed on its worldwide income, a non-resident
enterprise is taxed in Nigeria on profits earned from business or commerce conducted in Nigeria. That is to say, the company’s branches in other countries are not required to pay taxes in Nigeria.
For any business operating in Nigeria, understanding tax regulations is essential to ensuring compliance and preventing any potential legal problems.