Home Tech FG sets to impose heavy tax on technology and digital companies

FG sets to impose heavy tax on technology and digital companies

The Federal Government from all indication will soon impose heavy tax on giant technology and digital companies in Nigeria.

The Vice President, Prof. Yemi Osinbajo who disclosed this said that the federal government will utilize its legal provisions to collect taxes on profits made in the country by global technology and digital firms not based in the country, but with significant economic presence.

The VP disclosed this during an interactive session with a delegation of the Chartered Institute of Taxation of Nigeria, (CITN) led by its President, Mr Adesina Adedayo at the Presidential Villa.

He however assured Nigerians that government would not be increasing tax any time soon.

“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, including by collecting taxes on the Nigerian income of global technology 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 Minister (Finance) 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. Several efforts have been made, and 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.” He concluded.

READ ALSO  YouTube Fetes Fans, Content Creators

LEAVE A REPLY

Please enter your comment!
Please enter your name here
READ ALSO  Blake Shelton Goes Up Against Christina Aguilera

Must Read

You are a disgrace! Chidoka lambasts Senators against e-transmission of polls results

…urges House of Reps to redeem NASSBy: Chuks Collins, Awka The former Minister of Aviation and chieftain of...

Sound Sultan’s last prayer before death

Late Singer, Lanre Fasasi, a.k.a Sound Sultan, had urged Nigerians to celebrate people while they were alive. This...

Monarch bemoans general despair in Nigeria, “while the Presidency fiddles with inanities”

By: Chuks Collins, Awka The traditional ruler of Nnobi Kingdom in Idemili South Local Government Area of Anambra...

Nigeria is a failed state, Nnewi Anglican Bishop declares

The Bishop of Nnewi Anglican Communion, Rt. Rev'd Ndubuisi Obi has described Nigeria as a failed state. Bishop...

FG justifies capacity drop in the Mambilla power project

The federal government has justified the reduction in the capacity of the Mambilla power project from 3,500 megawatts to 1,500 megawatts,...
Shares
×

Hello!

Click one of our representatives below to chat on WhatsApp or send us an email to admin@foxchannelonline.com

× How can I help you?