Nigeria’s Vice President, Prof. Yemi Osinbajo has stated that the country will use its relevant laws that empower the Federal Government to collect taxes on profits made in the country by global technology and digital firms not based in the country, but with a significant economic presence here.
Osinbajo said this on Friday during an interactive session with a delegation of the Chartered Institute of Taxation of Nigeria led by its President, Adesina Adedayo, who visited him at the Presidential Villa.
He also disclosed that, while the Federal Government will not be raising tax rates at this time, based on the Finance Act 2019, it is already empowered to widen its tax net.
That includes imposing taxes on the Nigerian income of global tech giants with significant economic presence in the country, even if they have not established a physical office or permanent establishment and are currently not paying taxes in Nigeria.
Google, Facebook, TwitterBan, Tiktok, LinkedIn and Microsoft would be the biggest hit.
Senior Special Assistant to the Vice President on Media and Publicity, Laolu Akande, disclosed this on Sunday in a statement titled ‘How FG will tax profits made by global tech, digital giants in Nigeria, by Osinbajo.’
Osinbajo said, “We have had severe economic downturns which of course implies that we may not be able to collect taxes with the aggressiveness that would ordinarily be expected.
“I think the most important thing is that we must widen our tax net so that more people who are eligible to pay tax are paying.
The President of CITN, Adesina Adedayo, commended the leadership of the Vice President in the implementation of key government interventions in the economy, stating that “we acknowledge your great zeal and commitment to Nigeria project.”
He stated that there was urgent need to seek avenues to block loopholes in tax payment in Nigeria.©Standard Gazette, 2021. Unauthorized use and/or duplication of this material without express and written permission from this site’s publisher is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Standard Gazette with appropriate and specific direction to the original content.