In the first half of 2024, foreign companies such as Google, Netflix, and Facebook operating in Nigeria paid a substantial N2.55 trillion in taxes to the Federal Government.…..For More READ THE FULL ARTICLE HERE ▶▶...CLICK HERE TO CONTINUE READING.>>
According to The PUNCH, this figure marks a significant increase of 158.76% compared to the N985.27 billion collected in the same period of 2023.
Thank you for reading this post, don't forget to subscribe!The amount includes Company Income Tax and Value Added Tax collected based on data from the National Bureau of Statistics.
The CIT, a 30% tax on corporate profits, and VAT, a 7.5% consumption tax on goods and services borne by the final consumer, are crucial components of the revenue collected.
Since 2020, the Federal Government had planned to start taxing foreign digital service providers, recognizing the high usage of these services among Nigerians.
This includes companies offering digital content, social media platforms, and video streaming services that generate revenue in Nigeria but do not have a physical presence in the country.
In January 2022, the Federal Government announced a 6% tax on the turnover of offshore companies providing digital services to Nigerian customers, as outlined in the 2021 Finance Act.
This tax covers firms like Netflix, Facebook, and Twitter, which offer services such as digital video streaming and advertising without maintaining a physical office in Nigeria.
A detailed breakdown shows that between January and June 2024, these companies contributed N1.72 trillion in CIT and N831.47 billion in VAT.
Notably, CIT revenues rose by 87.2% from N598.13 billion in the first quarter to N1.12 trillion in the second quarter. This contribution was more than 45.3% of the N2.4 trillion collected in the second quarter.
VAT revenue, on the other hand, experienced a slight decrease, with earnings of N435.73 billion in Q1 and N395.74 billion in Q2, reflecting a reduction of N39.99 billion.
Furthermore, Finance Minister and Coordinating Minister of the Economy, Wale Edun, reported that the Federal Government’s revenue for the first quarter of 2024 reached N9.1 trillion, a notable increase from the previous year, achieved without raising taxes.…..For More READ THE FULL ARTICLE HERE ▶▶
