Work Visa for Foreign Executives

Foreign business executives may apply for a permanent Work Visa in the Nigerian Embassy or High Commission competent for the country of their residence. There is no limit to the number of visas granted for the same enterprise. As usual, fees are charged for the issuance of such visas.


Categories of Taxes

There are four categories of Federal Taxes in Nigeria:

  1. Corporate Income Tax

  2. Capital Gains Tax

  3. Value Added Tax (VAT)

  4. Withholding Tax

Whereas, Personal Income Tax is collected by the State Governments. In addition, state and local governments may impose certain taxes related to the registration of motor vehicles, sewerage, etc.

There is however an approved list of taxes and levies to be collected by every tier of government in order to curb multiple taxation.

  1. Current Tax Regime.
    The rate of the Corporate Tax is currently 30%

  2. Capital Gains Tax
    The current Capital Gains Tax rate is 10%

  3. Value Added Tax (VAT)
    The current VAT rate is 5%

  4. Withholding Tax

Dividend, royalties and interests on foreign loans are subject to a tax of 5% before repatriation.

Tax Incentives

Provision for Losses

  1. Provision for Company losses may be carried forward without limit in time and importance.

  2. Accelerated Capital Allowances.
    Accelerated Capital Allowances are permitted; for immovable, over a period of 10 years and for equipment, over a period of 5 years.

  3. Infrastructure Investments
    Expenses for infrastructure investment such as boreholes,Power generators, and company courier services are fully Deductible from the company taxable income.

  4. Exemption from Real Estate Tax

Agricultural and manufacturing companies are exempted from Real Estate Taxes on estates affected to their activities.

Repatriation of Income

Both personal and company income may be repatriated in any currency without permission and without limitation after payment of income taxes.

Exemption from Import Duties and VAT

Imported machines and investment goods, raw materials and semi-finished products used for manufacturing in Nigeria are exempted from Import Duties and VAT.

Tax Relief on Export Oriented Enterprises

New enterprises operating in any Export Processing Zone in Nigeria, which do not sell more than 25% of their production on the domestic market and 100% Export Oriented Enterprises, established outside an Export Free Zone, enjoy a full corporate tax exemption for a duration of 12 years.

Pioneer Status

Companies operating in designated pioneer industries or manufacturing pioneer products are eligible for an income tax holiday of 5 years, brought to 7 years for industries located in economically disadvantaged areas.

Capital Gains Tax

Gains from Disposal of shares and stock are exempted from Tax.