Nation
FG To Tax Profits Made By Global Tech, Digital Giants In Nigeria
Legal provisions will be utilised to collect taxes on profits made locally by global technology and digital firms not based in Nigeria, but with significant economic presence in the country.
Vice President Yemi Osinbajo stated this during an interaction with a delegation from the Chartered Institute of Taxation of Nigeria (CITN), led by its President, Mr Adesina Adedayo, at the Presidential Villa.
Osinbajo’s spokesman, Laolu Akande, made this known in a statement on Sunday in Abuja,
“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 the tax net.
“This includes collecting taxes on the Nigerian income of global tech giants with significant economic presence here, even if they have not established an office or permanent establishment, and are currently not paying taxes in Nigeria.
“In this regard, Section 4 of the Finance Act 2019, provides that the finance minister, may by order of the president, determine what constitutes the significant economic presence of a company, other than a Nigerian company.
”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,” Osinbajo said.
Akande siad in the statement that the vice president also noted that several efforts had been made in that regard.
“I am sure you are aware of the initiatives including the Voluntary Assets and Income Declaration Scheme (VAIDS), which was also an attempt to bring more people into the tax net, including those who have foreign assets.”
According to the vice president, the Federal Government has also recently taken a step with respect to a lot of the technology companies that are not represented in Nigeria, but who do huge volumes of business in the country.
He said that the Finance Act had shown that Nigeria was prepared to ensure that the big technology companies did not escape without their fair share of taxation in Nigeria.
“Many of them do incredible volumes here in Nigeria and in several other parts of the region.
“We have drawn up the regulations and we are prepared to go, and I think that we are at least in a good place to tap into some of the tax resources we can get from some of these companies.
“Besides the Federal Government, a recent Bloomberg news article reported that “Governments around the world are grappling with how to modernise their legal frameworks to account for the global reach of the digital economy, reshaping how policymakers think about issues as varied as monopoly power, taxation and workers’ rights.”
He said that international talks were currently ongoing in Paris on global standard rules for governments to receive taxes from such digital and technology firms with significant economic presence in foreign countries.
Osinbajo gave further explanations on legal provisions for the subject matter.
“In Nigeria, according to the Finance Act 2019, a company will pay taxes if it transmits, emits or receives signals, sounds, messages, images or data of any kind by cable, radio, electromagnetic systems, or any other electronic or wireless apparatus to Nigeria.
“This in respect of any activity, including electronic commerce, application store, high-frequency trading, electronic data storage, online adverts, participative network platform, online payments and so on, to the extent that the company has significant economic presence in Nigeria and profit can be attributable to such activity.”
He said that the Federal Government had no plans to raise taxes currently in reference to arguments that tax rates were too low, comparing Nigeria to other places in the region where the rates were much higher.
“So we have had to balance all of these issues, because clearly, higher tax rates can be a disincentive to businesses and investments.
“In terms of domestic resource mobilisation, we are trying to do the best we can given the present circumstances and I believe that there is room for improvement.
“Actually, under the Finance Act 2019, the Federal Government has reduced taxes for small companies – companies with less than N25 million in annual turnover are charged Zero Company Income Tax, CIT.
“Also CIT for Companies with revenues between N25 million and N100m (described in the Act as “medium-sized” companies) has been reduced from 30 per cent to 20 per cent.
“Besides, Nigerians making minimum wage income are not to pay tax at all,” he said.
He said that under the 2020 Finance Act, there was also an exemption of small companies from payment of education tax under the Tertiary Education Trust fund (TETFUND), meaning companies with less than N25 million turnover were eligible.
Osinbajo added there was a 50 per cent reduction in minimum tax; from 0.5 per cent to 0.25 per cent for gross turnover for financial years ending between Jan. 1, 2020 and Dec. 31, 2021.
Earlier in his remarks, Adedayo commended the leadership of the vice president in the implementation of key government interventions in the economy.
“We acknowledge your great zeal and commitment to the Nigeria project,” he said.
Adedayo said the visit became necessary given the enormous work the administration had done towards addressing the huge fiscal challenges in the polity, public financing reforms, and sustained efforts towards addressing infrastructure deficit.
Other members of the delegation included the Vice President of the Institute, Samuel Olushola Agbeluyi, past Presidents, Dame Gladys Simplice, and Dr James Naiyeju.
In attendance also were; council members Prof. Muhammad Mainoma and Babangida Ibrahim., as well as Adefisayo Awogbade, CITN Registrar/Chief Executive.
The Alliance Française Port Harcourt in conjunction with the Embassy of France Nigeria over the weekend joined the globe to campaign against the 2025 gender- based violence (GBV) with the theme: “16 Days of Activism Against Gender- Based Voice”
The event which took place at the event Hall of the Alliance Française Port Harcourt was in collaboration with the Female in Gaming Network, ( FIGN) and partnership with Nexal a body that seeks to promote online safety and responsible digital behaviour.
The Tide reports that the project which was aimed at promoting digital safety and girls inclusion in Gaming, with the initiative tagged ‘Gameover Gender- Base Violence’was part of the global campaign against gender- based Violence.
The activity which experienced a flavour of festivity was full of fun and excitements as participants took part in tournaments on popular digital games such as Mario kart and EAFC 25, with an intent to creating safer and more inclusive digital spaces.
The Director of the Alliance Française Port Harcourt, Mrs Marina Lacal said that these activities were designed to encourage inclusion of girls, team work and fair play on online gaming spaces, saying that the gaming world reflects these inequalities, where female players are often under represented.
According to her the main objectives of the initiative was to provide a supportive environment for girls and female in gaming network.
“GameOverGBV” is a project created to reshape this landscape by offering an innovative inclusiveness of girls on online digital Gaming community and digital environments that provide opportunities for creativity, learning and connection, but also fight against Gender-Based Violence Digital Gaming,”she said
She however, explained that the Digital Game, sport competitions, was launched to strengthen social and digital skills through games, workshops, and raise awareness among all young participants about respect, equality and digital citizenship.
The Tide News reports that in Port Harcourt, the competition brought together 100 young participants from three major universities: University of Port Harcourt, ( UNIPORT),Ignatius Ajuru University of Education(IAUE) and Rivers State University (RSU)as well as students from four selected secondary schools, Oginigba comprehensive Secondary.School, Vine lnternational, Virgo predicanda lnternational, and Excellent Montessori Secondary school.
“This is an approach where girls and boys can learn, play and collaborate in a more respectful and safe space for young women, while ensuring a safe, enjoyable and respectful digital environment. It also expose young women to cyberbullying, exclusion, sexist comments and online hate,” Mrs. Lacal said.
Earlier, a game developer Sophia Nei and her. team had engaged participants in an interactive session with the theme: “Can Video Games Be Safe Spaces For Girls?”
However, Mrs Nei and her team educated the girls on the benefits and violence on online digital gaming and urged them ( participants)to learn to say ‘No’ to Online hate, sexist and cyber bullying, while encouraging them(students) to stand up for themselves by reporting such issues to the appropriate authority.
Highlight of the competition was the awarding of prizes to winners by the Director of Alliance Française, Mrs Marina Lacal.
