Nigeria

Unilateral relief

When a Nigerian resident earns income from outside Nigeria that is taxed both in the source country and in Nigeria, the tax paid abroad can be credited against the Nigerian tax due on that same income. However, the allowable credit is limited to the lower of the Nigerian tax attributable to the foreign income or the actual tax paid in the foreign country.  

Foreign tax relief

When Nigeria enters into a double taxation agreement with another country, the agreement becomes effective once ratified or domesticated by the National Assembly, allowing income tax paid in the treaty partner country to be credited against Nigerian tax on the same income. The Nigerian tax payable on such income is reduced by the admissible credit under the treaty, but this relief is only available to individuals who were Nigerian residents during the relevant year of assessment. The credit is limited to the lower of the Nigerian tax attributable to the foreign income or the amount of tax actually paid to the treaty partner.   

Tax treaties

Nigeria has DTTs with Belgium, Canada, China, Czech Republic, France, the Netherlands, Pakistan, Philippines, Romania, Singapore, Slovakia, South Africa, Spain, Sweden, and the United Kingdom.