Ending your tax residency in Nigeria is a significant step, often driven by relocation, changes in personal circumstances, or other considerations. This guide will walk you through the essential steps required to officially cease your tax residency in Nigeria.
Evaluate Your Tax Residency Status
First, determine if you meet the criteria for tax residency in Nigeria according to the Nigerian tax laws. You are generally considered a tax resident if you have spent a minimum of 183 days in Nigeria within a 12-month period or if you have a significant economic connection to the country.
Notify the Tax Authorities
Submit a formal written notice to the Federal Inland Revenue Service (FIRS) indicating your intention to cease being a tax resident. This notification should include your reasons for leaving and the date you intend to depart or have departed from Nigeria.
Clear Outstanding Tax Liabilities
Ensure that all your tax obligations are settled. File any outstanding tax returns and pay any taxes due. This step is crucial as you need to be in good standing with the tax authorities before ceasing your tax residency.
Provide Supporting Documentation
Along with your written notice, submit supporting documents such as proof of departure (e.g., flight tickets), new residency details, and any other relevant information that demonstrates your relocation from Nigeria.
Obtain Tax Clearance Certificate
Request a Tax Clearance Certificate from the FIRS. This certificate serves as proof that you have settled all tax liabilities and have no outstanding tax obligations in Nigeria.
Update Personal and Business Records
Inform relevant institutions, such as banks and business partners, of your change in residency status. Ensure that your personal and business records reflect your new residency status to avoid any future complications.
Legal References
- Personal Income Tax Act (PITA), Cap P8, LFN 2004
- Federal Inland Revenue Service (Establishment) Act, 2007
- Companies Income Tax Act (CITA), Cap C21, LFN 2004
Useful Links
- Federal Inland Revenue Service (FIRS)
- Nigeria Immigration Service (NIS)
- National Identity Management Commission (NIMC)
