Section 13 Nigeria Tax Act 2025

Section 13 of the Nigeria Tax Act 2025 is about Employment income. It provides as follows:

(1) The income, gain or profit from an employment is derived from Nigeria where –
(a) the employee is a resident of Nigeria ; or

(b) the duties of the employment are wholly or partly performed in Nigeria and the remuneration is –
(i) paid by, or on behalf of, an employer who is a resident of
Nigeria,
(ii) borne by a Nigerian fixed base, permanent establishment or
any other form of taxable presence of a non-resident employer, or
(iii) not liable to tax in the employee’s country of tax residence.

(2) Notwithstanding the provisions of subsection (1)(b), the employment income of a non-resident employee shall not be taxed in Nigeria where the –
(a) employer is a start-up, or is engaged in technology-driven services or creative arts; and

(b) the employment income is taxable in the employee’s country of tax residence.

(3) The remunerations of an employee of the Government of Nigeria is derived from Nigeria where the employee performs the duties of that employment in a country which, under an agreement or diplomatic privileges, exempts the remuneration from tax.

(4) Where the duties of an employment are wholly or mainly performed in Nigeria, the remuneration from the employment during any period of leave or temporary absence from Nigeria is derived from Nigeria.

(5) Notwithstanding the provisions of this section, the remuneration of an individual from an employment is chargeable to tax in Nigeria where the individual is a –
(a) seafarer serving under articles which he had signed in Nigeria,
or is performing a stand-by duty on-board a ship preparatory to his
signing articles in Nigeria;

(b) Nigerian and performs the duties of that employment in a foreign country, and that country exempts the remuneration from tax under an agreement or diplomatic arrangement to which Nigeria is a party; or

(c) Nigerian and performs the duties of the employment in Nigeria for a foreign country or international organisation, and that remuneration is not subject to tax in any other country under an agreement or diplomatic arrangement to which Nigeria is a party.

(6) For the purposes of this section –
(a) “financial technology” means the development and use of software or technology as the primary and principal mode of providing financial solution or service;

(b) “shared services” means services provided by a member of a group of companies solely and exclusively to the other members of the group;
(c) “startup” means a Nigerian company granted start-up label under the Nigeria Startup Act, 2022 ; and

(d) “technology driven services” means financial technology (fintech), shared services, computer software or application development, virtual learning or any other business that the Minister may designate, by Order published in the Official Gazette;

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