VAIDS Looks at Your Global Income - Learn More

VAIDS Looks at Your Global Income - Learn More

Global income relates to international tax system, and concerns countries with worldwide income taxation policies. In this connection, there are territorial and regional taxation systems under a well defines types of international taxation models and tax treaties.

Global Income  is the aggregate of your income from all of your sources of income all over the world. Global Income Tax is the income tax  attributable to your global income. The computation of such tax undergoes some technicalities to arrive at, especially to avoid double taxation and to comply with bilateral or multilateral tax treaties, e.g the commonwealth tax treaties.

VAIDS Looks at Your Global Income - Learn More

VAIDS Looks at Your Global Income - Learn More

Double Taxation  and Double Taxation Reliefs:  What about these 2 things?

Double taxation is a taxation principle which explains how a single income is taxed twice.  An example is  when  the same income is taxed at both the corporate level and personal level. It also occurs in international trade when the same income is taxed in two different countries.

To avoid Double Taxation, Double Taxation Relief is always granted to take care of the portion already paid in the first tax jurisdiction. Such could be  deduction for foreign tax paid on turnover basis in respect of an income which is also subject to tax in a home country. 

The truth is that you will need a tax accountant/consultant to handle this aspect of your tax matter. If you have such challenges call me on +234 8034347851 or e-mail me via cfmclimited@gmail.com

VAIDS Looks at Your Global Income - Learn More

Double Taxation Treaties: What you should know!

This extract from FIRS publication states: A tax treaty is a written tax agreement between two contracting states for the avoidance of double taxation and fiscal evasion. It identifies all items of income and defines what standards would apply to their taxation as well as where each income would become taxable (at residence, at source or both) and when this should be done. A tax treaty clearly spells out the conditions for the limitation or denial of benefits under the agreement.

FIRS continues: The agreement also does the following:


  • Guide against the occurrence of a double taxation scenario in which a particular income is taxed twice in the hand of a taxpayer by either his home Country (Country of residence) or the Country of source of the income.
  • Modifies domestic tax laws by reducing the domestic tax rate.
  • Grants concessions to beneficiaries.
  • Guide against the occurrence of a double non-taxation scenario in which a particular income escapes taxation from both the source State (where the revenue is generated) and resident State (State of residence of the enterprise) in the hand of a taxpayer.
  • Exchange of all relevant tax information beneficial to either or both Contracting States for the furtherance of the operation of the Agreement.
  • Assistance in the collection of taxes by either Contracting States
  • Establishment of the Mutual Agreement Procedure (MAP) for the resolution of disputes emanating from the implementation of the agreement or the taxation of income of residents of both Contracting States


Now that you have come to know what your global income is, let's see how you can go about it.

VAIDS Looks at Your Global Income - Learn More

Your Global Income and Residence Principle

Nigerian tax law is clear that Nigerian tax residents are liable to pay tax on their income earned anywhere in the world.

Must I be resident in Nigeria to participate? What if I spend time abroad? Now read this:

The  Nigerian resident tax principle is applied to:

  • Individuals that derive income from sources in Nigeria;
  • Employees that are in Nigerian employment or resident in Nigeria for at least 183 days within a twelve month period; and
  • Nigerian companies who were incorporated or have a fixed base in Nigeria.


Therefore VAIDS seek to apply these principles to cover the following:

  •  Nigerian residents who had taxable undeclared income outside Nigeria and 
  • non – residents who earned undeclared income derived from or accruing within Nigeria.
  • Those who are resident outside of Nigeria are encouraged to make an online declaration, or to appoint a local agent to make the necessary declaration on their behalf.

 What about assets located outside of the country on which no income is earned?

If you own assets abroad which you use personally, and as such it does not generate any income for you, but if the original purchase of those assets was, in any way, financed from revenue earned by  you ( a Nigerian tax payer) on which the correct amount of tax was not paid in Nigeria, then the unpaid tax liability may attach to that overseas asset.

 What about assets that are owned in jurisdictions where there is no tax payable?

 If you are the beneficial owner of those assets  and have paid all taxes on the funds prior to their transfer to the tax shelter/tax havens, then there will be no additional liability except any tax payable on further income earned on those funds. 

Just be sure you paid all tax due to such transferred assets, otherwise, you are owing the taxes due to such funds, and VAIDS has the solution to that now.

VAIDS Looks at Your Global Income - Learn More

 What about assets held in nominee names? Can they now be formally declared? Am I free to transfer them after the declaration?

Under VAIDS all assets owned, whether held directly or indirectly should be formally declared. It also gives a "soft landing schedule" to create  proper records so that future dealings with such assets will be properly recorded. 

After declaration, the owner of assets held in nominee’s names can then freely transfer them based on the extant law.

Declaring Your Global Income:

It's very important that you declare truthfully and completely your global income for tax purposes. In this website, I have written articles on the international connection of VAIDS, the implication of non-participation, and so on. VAIDS is a good opportunity to avoid national and international tax embarrassments.


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VAIDS Looks at Your Global Income - Learn More

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