AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
If you live in Canada and do the work from Canada, the salary is Canadian-taxable employment income, reported in Canadian dollars on your return; under Article 15 of the Canada–Nigeria agreement, pay for work done in Canada by a Canadian resident is taxed only in Canada. Whether your employer should still run Nigerian PAYE depends on whether Nigeria treats you as resident there. A Nigerian employer with no Canadian establishment usually withholds no Canadian tax or CPP, so you pay through your return.
The Canadian side
Canada taxes its residents on world income. A salary from a Lagos company, paid in naira or dollars, is employment income like any other: report it in Canadian dollars, converted at the Bank of Canada rate for each pay date or at another rate the CRA accepts under its reporting-currency folio. You will not get a T4, so use your payslips and bank statements.
The Canada Pension Plan Regulations (s.22) treat employment by an employer that is not resident in Canada and has no establishment here as excepted from pensionable employment, unless the employer makes arrangements with the Minister. So normally there is no CPP or EI deduction and no Canadian tax withheld. You owe the tax when you file, and our guide to CPP when a Nigerian company pays you explains the consequences for your pension.
What the treaty says
Article 15 of the Canada–Nigeria agreement says salaries of a resident of one country are taxable only in that country unless the employment is exercised in the other country. If you are resident in Canada and sit at a desk in Canada, the employment is exercised in Canada, so under the treaty only Canada taxes it. Nigeria could tax the pay for days you actually work in Nigeria, subject to the 183-day short-stay exemption when the employer is not resident where you work, which does not help here because the employer is Nigerian.
| Where you do the work | Who may tax under Article 15 (you are a Canadian treaty resident) |
|---|---|
| In Canada, all year | Canada only |
| Two weeks working from Lagos during a visit | Canada on everything; Nigeria may tax the pay for the Lagos days |
| Mostly in Nigeria | Check residence first; you may not be a Canadian treaty resident |
The Nigerian side: should PAYE stop?
Nigerian PAYE follows Nigerian residence. PwC’s summary of the Nigeria Tax Act 2025 says an individual is resident if any one test is met: domicile, a permanent home available for your use, habitual abode, 183 days or more in a 12-month period, substantial economic or immediate family ties, or being a Nigerian diplomat abroad. Only someone who meets none of them is non-resident. PwC also describes Nigerian-derived employment income in terms of where the duties are performed. The NiDCOM diaspora guide to the 2026 reforms says a non-resident doing remote work abroad has no Nigerian filing duty from that alone.
The practical result: if you have moved your home and family to Canada and keep no house in Nigeria for your own use, you may well be non-resident in Nigeria, and the employer should stop PAYE. If you keep a home in Lagos or your spouse and children are still there, Nigeria may treat you as resident, and you may be resident in both countries. Then the treaty tie-breaker decides; see tax resident in both Canada and Nigeria.
If PAYE is still deducted
Many Nigerian payrolls keep deducting by default. The CRA’s foreign tax credit folio says voluntary payments are not creditable, and tax withheld beyond what a treaty allows is not "foreign tax paid"; you are expected to reclaim it from the foreign authority. So if Nigeria has no right to tax your Canadian work, the PAYE is not a reliable credit in Canada, and you could pay twice.
- Write to HR stating your move date and that you work from Canada.
- Ask them to stop PAYE from that date, or to explain in writing why they will not.
- Keep the payslips that show what was deducted.
- If tax was deducted that Nigeria was not entitled to, ask the employer and the state tax authority about a refund.
- Where both countries say they can tax, Article 25 lets you ask the CRA to raise it with Nigeria within two years of the first notice.
Pension and other deductions
PenCom’s FAQ sets contributory pension at a minimum of 10% from the employer and 8% from the employee. Whether that continues while you are abroad is a matter for your employer and your PFA; it does not change the fact that the salary is reported in Canada. See remote work, PAYE and pension for the Nigeria-side detail, and how PAYE remittance works in Nigeria.
A worked example
Example only. Funmi moved to Halifax in January 2025 and kept her job with a Lagos bank, working remotely. Her pay converts to C$60,000 for the year. She gave up her Lagos flat and her husband moved with her. Her employer kept deducting PAYE until April.
- Canada: she reports C$60,000 of employment income and pays tax on it when she files; no CPP was deducted.
- Nigeria: with no home, family or 183 days there, she appears non-resident, so the PAYE taken January–April is not a dependable Canadian credit.
- Action: she asks the employer to stop PAYE and pursues a refund for January–April.
Where Pryme fits
Being paid in Nigeria while living in Canada is easier when the money can arrive and stay in its own currency. A Pryme account opened from Canada holds naira and dollars; Swap converts when you choose, with the rate and the fee shown before you approve. See also how a Nigerian employer can pay you in Canada.
Questions people ask
Do I pay Canadian tax on my Nigerian salary if I work remotely from Canada?
Yes. As a Canadian resident doing the work in Canada, the salary is taxable in Canada, and under Article 15 of the treaty only Canada taxes it.
Should my Nigerian employer still deduct PAYE?
Only if Nigeria treats you as resident or you do work in Nigeria. If you meet none of the Nigerian residence tests, ask the employer to stop.
Can I claim Nigerian PAYE as a credit in Canada?
Only where Nigeria was entitled to the tax. The CRA does not credit voluntary payments or tax above what the treaty allows.
Does a Nigerian employer pay CPP for me?
Normally not. Employment by a non-resident employer with no Canadian establishment is excepted from CPP unless the employer arranges otherwise.
Sources
- Global Affairs Canada Treaty Law database: Agreement between Canada and Nigeria for the avoidance of double taxation (signed Abuja, 4 Aug 1992) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual residence (reviewed 29 May 2026) · accessed Oct 2026
- NiDCOM / NGEX: Diaspora guide to Nigeria's 2026 tax reforms (Jan 2026) · accessed Oct 2026
- CRA Income Tax Folio S5-F2-C1, Foreign Tax Credit (modified 31 Mar 2026) · accessed Oct 2026
- Justice Laws: Canada Pension Plan Regulations s.22 (current to 30 Sep 2026) · accessed Oct 2026
- PenCom: Frequently asked questions (2023 edition) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.