Nigerian tax basics for Chiify income

Disclaimer first: Chiify is not a Nigerian tax authority and we cannot give tax advice. Please consult a qualified Nigerian accountant for your specific situation. The information below is the practical mechanics of how Chiify income works — not advice on what you should do with it.

How Chiify pays you

Chiify is a US-incorporated company (Frenz LLC, Iowa). When you receive a payout from us:

• The money is foreign-sourced income from your Nigerian perspective.
• We have no Nigerian tax presence, so we don't withhold any Nigerian tax.
• You receive the gross amount (full USD value at our prevailing rate, no Nigerian deductions).

Your reporting obligation

You're personally responsible for reporting this income to FIRS (Federal Inland Revenue Service) at year-end. Income from foreign sources is taxable in Nigeria if you're a Nigerian resident.

Most Nigerian authors treat Chiify income the same way they would treat any other freelance or royalty income from abroad:

• Declare under personal income tax (or company income tax if you publish through a registered Nigerian company).
• Claim allowable expenses (cover design, editing, marketing).
• Pay the assessed rate.

What we provide for tax filing

In your Payouts page, click Annual statement at the start of each year. We generate a downloadable PDF that shows:

• All sales in the prior year (per book, per retailer, per month)
• All payouts in the prior year (date, method, amount)
• Total gross income
• Total fees deducted (retailer cuts, Chiify commission)
• Net income to you

Hand this to your accountant.

Common questions

Do I need a TIN?

Yes — to file Nigerian income tax, you need a TIN (Tax Identification Number) from FIRS. Apply at your nearest tax office or via the FIRS portal.

Do I need to register a business?

Not for tax purposes. Individuals can declare foreign income on personal tax returns. Some authors register a Limited company for limiting personal liability and easier banking, but it's not required for Chiify.

Does the CBN report my Chiify income?

When USD comes in via international wire, your domiciliary bank may report large inflows to the CBN. For Naira local-transfer payouts via NIBSS, there's a record at NIBSS too. So yes, the financial system has visibility. Reporting it correctly is in your interest.

What about VAT?

Books are zero-rated for VAT in Nigeria (cultural exemption). You don't charge or pay VAT on book sales.

What if my earnings are very small?

Even small income should be declared if you have a TIN. The penalties for non-disclosure are larger than the tax owed. If your annual earnings are below the income tax threshold (~₦300,000/year for residents), you may owe little or no tax — but still file.

Get help

A FIRS-registered accountant can usually handle a Chiify-author tax filing for ₦20,000–50,000/year. That's well worth it for the peace of mind.

For US authors and other non-Nigerian authors, your country's tax rules apply — please consult a local accountant.