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The short answer
An employee who keeps a home and family in Canada usually stays a Canadian tax resident while on assignment, so Canadian payroll and tax on worldwide income continue. Nigeria can tax the same salary if the employee becomes resident there, for example by spending 183 days or more in any 12-month period, or if the Lagos work is not duly taxed in Canada; any Nigerian tax paid is then claimed as a foreign tax credit in Canada. The employee also needs a Nigerian visa class that permits work, because a tourism visa does not.
Three questions before anyone flies
- Where is the employee tax resident during the assignment?
- Does Nigeria tax the salary for the Lagos days, and who withholds it?
- What does the employee need to work lawfully in Nigeria and stay covered for health care?
A fourth question is the company's: does having someone working in Lagos for months give the Canadian company a taxable presence in Nigeria? That is covered in a Lagos employee and Nigerian tax presence; this article stays with the employee.
The Canadian side: residence and payroll
The CRA's guide for Canadian residents abroad (T4131) treats a person who keeps significant residential ties while abroad as a factual resident of Canada. The significant ties are a home in Canada, a spouse or common-law partner, and dependants; secondary ties include personal property, a driver's licence, bank accounts and provincial health insurance. A factual resident reports world income and pays federal and provincial tax as before. An employee on a six-month Lagos assignment who keeps the family home in Calgary is the textbook factual resident.
So Canadian payroll usually continues: you keep withholding income tax through the usual calculation. Whether CPP and EI continue for work outside Canada depends on CRA rules for employment abroad; ask the CRA for a ruling if the position is unclear (requests can be made through My Business Account or form CPT1). If the employee is unsure about their own residence status, the CRA's form NR73 asks for a determination.
The Nigerian side: when Lagos taxes the salary
PwC's Nigeria residence summary (reviewed May 2026) describes the Nigeria Tax Act 2025 tests. An individual is resident if any one applies: domicile in Nigeria, a permanent home available for domestic use, habitual abode, 183 days or more in any 12-month period (including temporary absences), substantial economic or immediate family ties, or being a Nigerian diplomat abroad. The same summary says employment income is derived from Nigeria where the employee is resident, the duties are performed wholly or partly in Nigeria, and the pay for the Nigerian work is not duly taxed in the country of residence.
| Assignment pattern | Likely Nigerian position (per PwC summary) |
|---|---|
| Short trips, under 183 days in any 12 months, Canadian home kept | Residence tests less likely met; confirm the ties tests |
| Six months or more in Lagos | 183-day test can be met; Nigerian tax on the salary for Lagos work likely |
| Nigerian-born employee with family or a home in Nigeria | Ties or home tests may apply even for shorter stays |
The "substantial economic or immediate family ties" test matters for diaspora employees: a Nigerian-born engineer whose spouse lives in Lagos may meet it quickly. Canada and Nigeria have a tax convention, signed in 1992 and in force since 16 November 1999; its article on employment income decides which country has the first right to tax, and should be read with an adviser for any assignment over a few months.
Avoiding double tax
If Nigeria taxes the Lagos salary and Canada taxes the employee's world income, Canada gives relief through the foreign tax credit. The CRA's Folio S5-F2-C1 says the credit is the lesser of the foreign tax paid and the Canadian tax on that income, worked out country by country; evidence is a foreign tax slip or the foreign return and receipts; and the foreign tax is converted at the same rate as the related income. Voluntary payments are not creditable, so pay only the tax that is actually due.
Worked example (illustrative)
Example: an employee earns $90,000 in the year and spends seven months in Lagos. Suppose Nigerian PAYE of $6,000 is paid on the salary for the Lagos months, and Canadian tax on that same slice of income is $9,500. The credit is the lesser figure: $6,000. Had the Nigerian tax been $11,000, the credit would stop at $9,500 and the extra $1,500 would be a real cost. Many employers settle this with a tax equalisation clause in the assignment letter.
Permits and health cover
- Immigration: the Nigeria Immigration Service's tourism visa page says that category is for tourism only and work is not permitted. Use the NIS category that covers business or employment; for longer assignments, take advice on residence and work permits.
- Health: Ontario says residents must be physically in Ontario 153 days in any 12-month period to keep OHIP, and that those outside more than 212 days may need to reapply; other provinces have their own rules. Buy private medical cover for the assignment.
What to put in the assignment letter
- Dates, place of work and reporting line
- Pay, allowances and who pays Nigerian tax
- Tax equalisation or protection, if any
- Housing, flights home and medical cover
- What happens if the assignment is extended past 183 days
For a shorter version of the same questions from the employee's side, see working in Lagos for three months on a Canadian job.
Where Pryme fits
Assignees often need naira for rent and daily costs. A Pryme Personal or Business Account holds naira alongside US dollars, sterling and euros, and Swap shows the rate and fee before you approve a conversion. Allowances can be paid in naira through the business account, with a record for the assignment file.
Questions people ask
Does a Canadian employee working in Lagos stay a Canadian tax resident?
Usually yes if they keep significant residential ties such as a home, spouse or dependants in Canada, according to the CRA's T4131 guide.
When does Nigeria tax a foreign employee's salary?
Under the NTA 2025 tests summarised by PwC, residence can arise from 183 days in any 12 months or other ties, and income for duties in Nigeria not duly taxed at home is Nigerian income.
How do I avoid double tax on a Lagos assignment?
Canada gives a foreign tax credit for Nigerian tax paid, up to the Canadian tax on that income, with proof of the foreign tax.
Can a Canadian work in Lagos on a tourist visa?
No. The NIS tourism visa page says work is not permitted on that category.
Sources
- CRA: Guide T4131 Canadian Residents Abroad (Rev. 12, CCH copy) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria individual residence (reviewed 29 May 2026) · accessed Oct 2026
- CRA: Income Tax Folio S5-F2-C1, Foreign tax credit (modified 31 Mar 2026) · accessed Oct 2026
- Nigeria Immigration Service: Tourism visa F5A (undated) · accessed Oct 2026
- Ontario: Apply for OHIP and get a health card (updated 21 Jul 2025) · accessed Oct 2026
- CRA: RC4110 Employee or self-employed (modified 6 Oct 2023) · 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.