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Google, Netflix, Facebook and other foreign companies operating in Nigeria paid N2.55tn in taxes to the Federal Government in the first six months of 2024, Sunday PUNCH reports. ...READ THE FULL STORY FROM SOURCE ...READ THE FULL STORY FROM SOURCE
The amount represents an increase of 158.76 per cent from N985.27bn collected in the preceding period of 2023.
The figure includes Company Income Tax and Value Added Tax, collated from data obtained from the National Bureau of Statistics.
According to the Federal Inland Revenue Service, CIT is a 30 per cent tax imposed on companies’ profit, and VAT is a 7.5 per cent consumption tax paid when goods are purchased, and services are rendered and borne by the final consumer.
In 2020, the Federal Government had indicated plans to begin tax collection from foreign digital service providers offering services and earning revenue in naira due to its high acceptance by the Nigerian populace.
Some of these service providers, which are video streaming sites, social media platforms, and companies that offer downloads of digital content, are expected to pay digital tax to the Federal Inland Revenue Service.
Netflix, Facebook, Twitter, among others, which have been operating without a physical office in Nigeria, offer digital video and advertising services to Nigerians.
Others, like Alibaba and Amazon, generate revenue from Nigeria by processing and transmitting data collected about users in Nigeria, providing goods or services directly or through a digital platform, or offering intermediate services that link suppliers and customers in Nigeria.
Also, in January 2022, the Federal Government disclosed that it would charge offshore companies providing digital services to local customers in Nigeria a six per cent tax on turnover as provided in the 2021 Finance Act.
A breakdown of the reports showed that the companies paid N1.72tn as CIT while N831.47bn was collected as VAT between January and June 2024.
On a quarterly basis, Nigeria’s earnings from CIT increased by 87.2 per cent from N598.13bn in Q1 to N1.12tn in Q2.
Checks by our correspondent also revealed that the amount was the highest sum paid by the companies, contributing more than 45.3 per cent to the N2.4tn collected in the second quarter.
A breakdown of VAT showed that Nigeria earned N435.73bn in Q1 and N395.74 in Q2, marking a reduction of N39.99bn. DO YOU WANT TO SEE THE VIDEO OF THIS CONTENT? Click Here To W.atch The Full .Video HE.RE: Don’t Forget to visit the website for more fresh and original updates. Thanks
On Tuesday, the Minister for Finance and Coordinating Minister of the Economy, Wale Edun, revealed that the Federal Government’s revenue for the first quarter of 2024 increased to N9.1tn, more than doubling the amount recorded in 2023 without increasing taxes.▶For More READ THE FULL STORY▶▶
