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Guidance on double tax relief in Nigeria is available from the FIRS. Where Nigeria has the right to tax employment income (due to the employee's residence status or the fact that they work in Nigeria) tax credit relief should be allowed in Nigeria if there is a double tax treaty in place with the other country concerned and various treaty conditions are met (PITA, ss 11, 39 and FIRS Information Circular 2021/05 of 3 June 2021).

Details on how to calculate the tax credit are given in PITA, s 39. When calculating the income of the individual which is subject to the tax credit, the income derived from Nigeria will be increased by the appropriate amount of foreign tax suffered on that income.

Double tax treaty relief provided by one of Nigeria's double tax treaties can be beneficial, as a treaty can provide tax exemption for employment income in certain circumstances. This is in addition to any Foreign Tax Credit Relief (FTCR) in the treaty for taxable income. No special employee incentives are provided in Nigeria's DTAs.

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