(i) Resident individual: This refers to an individual who has a permanent home in Nigeria or resides in Nigeria for a period of 183 days or more in a tax year. The individual is subject to tax on all income earned globally.

(ii) Non-resident individual: A non-resident is an individual who is not domiciled in Nigeria but derives income from Nigeria. Such individuals are subject to tax only on income earned or derived from Nigeria.

(iii) Residence and nationality: Nationality is the legal relationship between an individual and a country, while residence relates to the place where the individual lives and is subjected to tax obligations based on the length of stay. Nationality does not necessarily determine tax residency.

(iv) Place of residence: This refers to the place where an individual ordinarily resides or has a permanent home. It forms the basis for determining tax liability under the Personal Income Tax Act.

(v) Principal place of residence: This is the primary location where an individual spends most of their time, particularly relevant for individuals with multiple residences. It determines the local tax authority to which the individual is liable