Twitter, Facebook, Netflix, And Others To Be Taxed By Federal Government
The Federal Government is prepared to issue an order requiring foreign tech service providers such as Facebook, Twitter, Netflix, YouTube, others to report revenues generated by Nigerian consumers and pay taxes to the Federal Inland Revenue Service (FIRS).
Based on reports by PUNCH, social media platforms, video streaming sites and other companies offering digital content downloads, are required to pay digital taxes to the FIRS.
Nigeria’s Minister of Finance, Zainab Ahmed, is said to have issued the Significant Economic Presence (SEP) Order 2020 as an amendment to the Finance Act 2019. These foreign digital service providers, who have been a part of Nigeria’s economy, will have to pay tax on some services or digital transactions if they have an important economic presence in Nigeria.
The new regulation would apply to companies with income of N25m or equivalent in other currencies from Nigeria in a year and those with a Nigerian domain name (.ng) or a website address in the country.
This comes after the government has confirmed that the coronavirus pandemic has affected most of Nigeria’s sources of revenue. With the stay-at-home order and social distancing, there has been an upsurge in online patronage, which has led to more gains for these tech platforms.