The Federal Government of Nigeria introduced, on 27th February 2024, the Expatriate Employment Levy, which mandates companies employing expatriates to pay a designated levy to the Government.
Overview
The Expatriate Employment Levy has the dual objective of promoting local talent utilization while also funding initiatives focused on skill development, job creation, and capacity building for indigenous workers.
Below are some of the key insights regarding the Expatriate Employment Levy and obligations of Nigerian companies with expatriate employees and staff.
Expatriate Employment Levy ("EEL")
The EEL applies to expatriate staff, i.e. non-citizen or non-resident expatriates that occupy quota positions or are engaged by means of Temporary Work Permit.
Private sector industries and companies that utilize foreign workforce or rely on expatriate labor are affected by the EEL and employers are responsible for the payment of the new levy.
- Accredited staff of diplomatic missions and government officials
- Seasonal, short-term and temporary workers who are spending less than 183 days over a period of one year in Nigeria
Amount Payable in Expatriate Employment Levy
Currently the amount payable as EEL is pegged at $15,000 USD for Directors and $10,000 USD for other categories of expatriate staff.
The Nigerian Immigration Service is designated to oversee the enforcement and payment of the levy and employers are required to log in to the EEL payment portal to make the payment.
The levy is payable annually.
Deadline for Payment of Expatriate Employment Levy
The deadline for payment is Thirty (30) days and the penalty for default payment is N3,000,000.
Obligations as an Expatriate Employer
It is imperative to ensure full compliance with the newly implemented EEL.
Failure to comply as regards filing existing expatriates, registration of new employees, renewing before expiration date and submitting false information results in penalty of up to N3,000,000.00.
Employers are required to maintain comprehensive records related to their expatriate employees as well as evidence of payment of their EEL, both of which are subject to audits by the Nigeria Immigration Service.
Employers are required to provide information and updates as well as notify relevant agencies of changes within stipulated timeframes.
- Compliance
- Maintaining Comprehensive Records
- Timely Reporting
Conclusion
In conclusion, ensuring compliance with the newly implemented Expatriate Employment Levy in Nigeria is paramount to any affected company's continued success and reputation. Berkeley Legal is a leading business law firm in Nigeria. We provide a comprehensive and sophisticated range of specialized and personalized legal services that are designed to meet the various needs of highly diversified local and international businesses.
For more information, contact info@berkeleylp.com.
The information provided in this article is for general informational purposes only and does not constitute legal advice.
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