Thursday, September 26, 2024

FG Wants to Change The Law to Tax Foreigners and Issue NINs.

The Federal Executive Council is advocating for a modification to the National Identity Management Commission Act No. 23 of 2007, which would permit the issuance of National Identification Numbers to foreign residents in the country. Additionally, on Wednesday, the FEC introduced the Economy Stabilisation Bill, aimed at facilitating the taxation of foreigners residing and working in Nigeria. These proposed legislative measures are designed to “broaden the category of registrable individuals to encompass foreign persons with a taxable presence or source of income in Nigeria, and to establish requirements for the compulsory use of National Identification Numbers in transactions pertinent to tax administration and related issues.” The government intends to add a new clause to Section 16, stating, “Any individual, regardless of Nigerian citizenship, who is considered a resident or otherwise liable for tax in Nigeria under any applicable legislation.” Should this bill be enacted, it would result in the taxation of expatriates and income-generating immigrants. Mr. Bayo Onanuga, the Special Adviser to the President on Information and Strategy, disclosed this information during a briefing with State House Correspondents at the Aso Rock Villa in Abuja on Wednesday. Onanuga elaborated that, “If the National Assembly approves this bill, it stipulates that all individuals residing in Nigeria, including foreigners, will be required to register and obtain a National Identification Number. “Once you are employed here and earning an income, you will be registered and assigned an NIN for taxation purposes. “Your NIN will serve as your tax identity, allowing you to be taxed and integrated into our tax framework. The original legislation establishing the NIMC excluded foreigners from registration.” Furthermore, the presidential aide announced a third bill aimed at amending the Nigerian Maritime Administration and Safety Agency Act No. 17 of 2007, which seeks to “mandate the payment of fees and other charges in naira to enhance the ease of doing business and for related purposes.” The amendment to Section 15 introduces a new subsection (2), which states, “All fees, charges, levies, fines, and other amounts due to the Agency under this Act may be paid in Naira at the applicable official exchange rate.” Onanuga elaborated, “Previously, these agencies required payments in dollars; however, they can now accept payments in Naira. This administration aims to prioritize our national currency rather than allowing the economy to be dominated by the dollar. The government is now asserting, ‘Payments should be made in Naira. There is no necessity for everything to be in dollars.’”

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