Section 13

(1) The income, gain or profit from an employment is derived Employment
from Nigeria where – income
(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 em-
ployment income of a non-resident employee shall not be taxed in Ni-
geria where the –
(a) employer is a start-up, or is engaged in technology-driven serv-
ices 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 Ni-
geria is derived from Nigeria where the employee performs the duties
of that employment in a country which, under an agreement or diplo-
matic privileges, exempts the remuneration from tax.
(4) Where the duties of an employment are wholly or mainly per-
formed in Nigeria, the remuneration from the employment during any
period of leave or temporary absence from Nigeria is derived from Ni-
geria.
(5) Notwithstanding the provisions of this section, the remunera-
tion 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 for-
eign 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 remunera-
tion is not subject to tax in any other country under an agreement or
diplomatic arrangement to which Nigeria is a party.
A 400 2025 No. 7 Nigeria Tax Act, 2025
(6) For the purposes of this section –
(a) "financial technology" means the development and use of soft-
ware 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;
Act No. 32, (c) "startup" means a Nigerian company granted start-up label under