Employ Candidates Compliantly in Nigeria

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  1. Overview: Nigeria
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global PEO and Payroll in Nigeria

Getting your business up-and-running in Nigeria can be challenging, especially if you do not speak the native language. Establishing your own business entity in Nigeria is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Nigeria, you should be fully aware of the risks involved.

Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Nigeria, without having to establish a legal business entity.

Acumen International – Your Professional Employer Organization in Nigeria

Navigating the Nigerian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Nigerian speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Nigeria without concern for legal and compliance risks.

Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Nigeria. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

International Global Payroll and Taxation in Nigeria

Employment related taxes

Personal income tax (PIT). Individuals resident in Nigeria are taxable on their worldwide income.

In the case of employment, a non-resident person is liable to tax in Nigeria if the duties of employment are wholly or partly performed in Nigeria, unless:

  • The duties are performed on behalf of an employer who is in a country other than Nigeria.
  • The remuneration of the employee is not borne by a fixed base of the employer in Nigeria.
  • The remuneration of the employee is liable to tax in that other country under the provisions of the avoidance of double taxation treaty (DTT) with that other country.

Nontaxable payments. The following income streams are tax exempt:

  • Reimbursement of expenses incurred by the employee in the performance of their duties, and from which the employee is not expected to make any profit
  • Retirement gratuities and compensation for loss of office
  • Interest on loans for developing an owner-occupied residential house.

Payroll Cycle in Nigeria

Wages must not be paid at intervals of more than one month, or on certain premises, except if the employee is employed on the premises.

Non-payroll taxes in Nigeria

Zero-rated items include non-oil exports, goods and services purchased by diplomats, and goods and services purchased for use in humanitarian donor-funded projects.

Government agencies and oil and gas companies are required to deduct at source VAT charged by their suppliers and remit it to the tax authority. All other organizations are required to collect VAT charged on their invoices from their customers for filing and payment to the tax authority.

The Finance Act has introduced a reverse charge mechanism for services from which no tax invoice was received. VAT returns is now to be filed on cash basis.

The FIRS has implemented a platform for auto tracking and remittance of VAT known as FIRS VAT-Collect. Some of the users of the system are domestic airlines (for instant remittance of VAT on their ticket sales) and other retailers.

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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Nigeria

Compensating your local and expat workforce in Nigeria and closely adhering to Nigerian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Nigerian labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Nigeria by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by Nigerian laws. To get the latest updates on taxation in Nigeria and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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