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Alison Heyerdahl is the Head of Content at FxScouts and a Chartered Market Technician (CMT), as well as a trader and financial writer with extensive experience in Forex trading, broker analysis, and market research. She has reviewed 100+ brokers, publishes weekly YouTube trading videos, and co-hosts the “Let’s Talk Forex” podcast.
Many Nigerian forex traders are not sure what their legal tax obligations are towards the Federal Inland Revenue Service(FIRS). Many trading accounts are overseas, and the gains made from their trading are not visible to FIRS, some traders open trading accounts with forex brokers located in Nigeria, or with brokers who have branches in Nigeria. In this case, these traders’ capital won’t leave the country.
In Nigeria, all profits from Forex trading are classified as Capital Gains and are taxed at 10% of the gross. It is a common misperception that traders don’t need to pay income tax on profits made in offshore trading accounts. If a Nigerian resident generates profit from trading in an offshore trading account while residing within the borders of Nigeria, the profit is regarded as normal taxable income and needs to be declared in heir tax returns. In this case, it doesn’t matter where the income originates from, but rather where the person resides while generating that income.
Forex traders should be aware that Nigerians trading on behalf of someone else must register as Fund/Portfolio Managerwith the Securities & Exchange Commission in Nigeria.
This article is a general guide only and is not intended as individual legal tax advice. For more specific information on Nigerian tax legislation please consult a registered tax practitioner or the Federal Inland Revenue Service.
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Partner Manager and Financial Writer
Head of Content
Financial Writer
