PataAlhajaKeji:


They're not required to have physical presence in Nigeria before being taxable.

Incomes derived from Nigeria by foreign entities are taxable under the Nigerian tax laws ... meaning incomes Twitter, Facebook and other big tech companies derive from Nigeria are taxable in Nigeria, irrespective of their physical presence in the country. Similar laws are applicable in most countries but the fear of the big tech companies have been a deterrent to their applications.

Stop giving opinions on issues you have no inkling about. Don't be a fool!

You call others "fool", yet you lack the minimal amount of knowledge required to be aware that there are existing laws and treaties governing the taxation of multinationals, to prevent them from being taxed multiple times on the same income.

Osinbajo can spout any propaganda he wants, but the Nigerian government simply doesn't have the power to unilaterally impose new taxes on internet companies whose primary operations are in other countries without bringing the wrath of the USA, the UK, the EU and the rest of the developed world upon the Buhari government. These are the same countries that through direct support, through their capital markets and their votes on the IMF and the World Bank, could easily crush what little life is left in the Nigerian economy if they so chose. The USA - under Biden - already came this close to imposing financial sanctions on the UK, Spain and other countries for their attempts to tax Apple, Amazon and their like, in the face of which those countries had to back down, so what do you think the reaction would be if a destitute sh*thole like Nigeria tried pulling a similar stunt because Buhari is a jumped-up, thin-skinned ignoramus?

All of you armchair nationalists ranting and raving about the supposed "justice" of something you know nothing about fail to realise the devastation that would be provoked if you had your way. Nigeria is already hostile enough to foreign business as it is, without nonsensical, international-law violating taxes being imposed upon the few who dare to do any business at all with this house of paupers who mistake themselves for lords.

Even if you gave this Nigerian Government the tax revenues from the US, UK, Canada, Australia, China, Japan, Germany, France, Spain, South Korea and Italy combined, it would still never be enough and they would still never have anything tangible to show for it.

The problem is not tax.

The tech company will pay if you want them to.

The problem is that the tax we have been paying, we have not benefitted from it.

What benefit do I have as a Nigerian who pays my tax monthly? You use my money to pay ransom to bandits and upgrade repented boko haram while me the tax payer still gets nothing from the govt.

In as much as they want to collect tax, let them specify what the tax collected will be used for.

That's the beginning of accountability

traihit:


What are you insinuating?

Do those entities have physical presence in Nigeria? No. Are they the only platforms making money from NIgerians no. What this actually translates to is that the government will be taxing virtually every website that generates income from NIgerians. If that doesn't translate to hardship for Nigerians, no problem.

The question is, why is Buhari all of a sudden interested in taxing tech companies heavily?

... If foreign Fulani herders can come do business in Nigeria without taxation why should anyone else pay?

presidency:
STATE HOUSE PRESS RELEASE

HOW FG WILL TAX PROFITS MADE BY GLOBAL TECH, DIGITAL GIANTS IN NIGERIA, BY OSINBAJO

*VP explains enabling provisions in Finance Act

*Interacting with Chartered Institute of Taxation members, Osinbajo says no tax increases contemplated for now

*CITN to VP: We acknowledge your great zeal
Nigeria is set to utilize its legal provisions that empower the Federal Government 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 here.

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 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 Minister (Finance) may by order (of the President) determine what constitutes the significant economic presence of a company other than a Nigerian company.”

Vice President Yemi Osinbajo, SAN, hinted at these issues and others while interacting with a delegation of the Chartered Institute of Taxation of Nigeria, CITN, led by its President, Mr Adesina Adedayo who visited him at the Presidential Villa on Friday.

According to Prof. Osinbajo, “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.”

Continuing, the VP said “we have also recently taken a step with respect to a lot of the technology companies that are not represented here but who do huge volumes of business here.

“The Finance Act has shown that we are very prepared to ensure that these big technology companies do not escape without paying 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.”

Indeed, besides the FG, a recent Bloomberg news article reported that "Governments around the world are grappling with how to modernize 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."

Also, international talks are 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.

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 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.

“If the trade or business comprises the furnishing of technical, management, consultancy or professional services outside of Nigeria to a person resident in Nigeria to the extent that the company has significant economic presence in Nigeria”

Speaking further, Prof. Osinbajo noted that while the Federal Government has no plans to raise taxes now, there are those who argue that “our tax rates are too low, comparing us to other places in the region where the rates are 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 mobilization, 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 Buhari administration 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 and N100m (described in the Act as “medium-sized” companies) has been reduced from 30% to 20%. Besides, Nigerians making minimum wage income are not to pay tax at all.

Under the 2020 Finance Act there is also an exemption of small companies from payment of education tax under the Tertiary Education Trust fund (TETFUND)-meaning companies with less than N25m turnover are eligible

Similarly, there is 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 January 1st, 2020 and December 31st, 2021

INTERACTION ON OTHER ISSUES
Welcoming the delegation, the Vice President emphasized the need for regular interaction between the council and government to address issues bothering on tax legislation, noting that “there is need for continuous engagement with the National Assembly because engagement with government cannot be a one-off thing.”

Prof. Osinbajo added that the Federal Government has over the past few years, initiated programmes aimed at improving the growth of small businesses including the formalization of many of them. Under the Economic Sustainability Plan (ESP), there is a formalization of 250,000 businesses.

He said the ongoing MSME Week has encouraged many businesses to register with regulatory authorities in order for them to benefit from the numerous programmes earmarked by the government for their growth.

Earlier in his remarks, the President of CITN, Mr Adesina Adedayo, commended the leadership of the Vice President in the implementation of key government interventions in the economy, stating that “we acknowledge your great zeal and commitment to Nigeria project.”

He said the visit became necessary given the enormous work the Buhari administration has done towards addressing the huge fiscal challenges in the polity, public financing reforms, and sustained efforts towards addressing infrastructural deficit across the country.

His words: “the Nigerian Economic Sustainability Plan (NESP) and other measures implemented was a right response to the challenges posed by COVID-19 pandemic and were largely instrumental to creating buffers for the government at all levels in withstanding the pressures and waves created during the peak period and the aftermath of COVID-19.

“It is important that we sustain measures already being implemented to improve tax collection at all levels.”

Other members of the delegation included the Vice President of the Institute, Barrister Samuel Olushola Agbeluyi, past Presidents of the institute, Dame Gladys Simplice, and Dr. James Naiyeju, and Council members Prof. Muhammad Mainoma and Hon. Babangida Ibrahim. Mr. Adefisayo Awogbade, CITN Registrar/Chief Executive was also in attendance.

Laolu Akande,
Senior Special Assistant to the President on Media & Publicity
Office of the Vice President
27th June 2021

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PLEASE FEEL FREE TO SHARE.
Thanks again and God bless you...


https://www.youtube.com/watch?v=j0IvSyciZEY

MemoriesAndMe:

They'll rather take their businesses to other countries with innovative and welcoming leaders because it appears they're doing Nigeria a favor by keeping them connected with the rest of the world.

It costs companies like google, Facebook, Instagram, Twitter etc nothing to block Nigeria entirely. Rather its Nigeria blocking Twitter when it would have been worse the other way round.

If Nigeria wants tax from them, Mali, Zimbabwe, Togo etc all ask for tax for using services these companies freely provide them, then whats their gain in even dealing with these countries in the first place?

If I was in a capacity to make decisions for a tech giant like google and common Nigeria is asking me to start paying taxes in Nigeria, I'd just be as quiet as Twitter has been about it and silently block all Nigerian IPs from accessing our services. By the time even the lawmakers aren't able to check their emails, can't access their app stores from their android phones and lose all functionalities, their brains will be reset to a point where they'd know they need us more than we need them.

Its almost like saying Google needs to start paying taxes because everyone in Nigeria uses a Gmail account and is affiliated with Google. What alternatives did the government provide before these tech giants provided them with better means of communicating?

Theyre even talking about asking whatshap to pay taxes. How much has anyone in Nigeria paid to use the free whatshap on their phones that Nigeria wants money for the free service whatshap offers Nigerians, on servers maintained by the company that wants to keep Nigeria included.

By the time this crop of leaders are done, everyone will be back to the age of writing letters to eachother when these companies all bar Nigeria totally from their services.

Once again Google is a business not part of the government.

Expecting the Nigerian government to provide an alternative to Google is daft.

I like how you guys push the "they" and not the"we".

As useless as the government you criticise.

Finally there's always a work around when something untried before is being proposed, it's just that you guys can hardly see beyond your nose's.

You think in the what is, exaggerate the limitations and when it's finally done somewhere else, you start blowing grammar again as usual.

I supporting getting a piece of revenue you generate as a country

folks4luv:
I wanted to say it's a welcome development, but then, i remember it will be more money for the 1% to steal and mismanage

They have not accounted for the tax deducted from our salaries, they are chooking eyes on foreign organizations.

mrfortunate1:
Don't kill your self over who the yorubas choose to vote for. When d time comes, vote for your candidate. It is insanity to give yourself headache over d choices of others

A suggestion is now giving one's self a headache? Lol.

neyyoh:


Once again Google is a business not part of the government.

Expecting the Nigerian government to provide an alternative to Google is daft.

I like how you guys push the "they" and not the"we".

As useless as the government you criticise.

Finally there's always a work around when something untried before is being proposed, it's just that you guys can hardly see beyond your nose's.

You think in the what is, exaggerate the limitations and when it's finally done somewhere else, you start blowing grammar again as usual.

What business did Google advertise for them to pay taxes for? They had their website running from the country they are legally registered in, where they pay taxes in and citizens of other countries found their services valuable and started using their services too. How does that translate to paying taxes in every country your website is accessed from?

Nairaland is a Nigerian website accessed by Nigerians all around the world interested in its contents, does it mean Nairaland has to pay taxes in each of these countries?

Google, whatshap and other tech giants will simply not pay any taxes to Nigeria and the worst that can happen is them barring the country from accessing their services.

Someone said they have millions of subscribers from Nigeria, how has the number of subscribers translated to revenue for whatshap, Twitter, Instagram etc? When was the last time anyone in Nigeria ever paid to use whatshap? Arent most people only looking for free services? These firms maintain infrastructure for the free stuff and didn't advertise themselves for Nigerians to start trooping to use their services for free.

The issue of taxing the media giants has come up in many countries around the world, and its just difficult to establish a taxation structure for such firms compared to typical brick and mortar businesses.

Several firms already blocked Nigerians from accessing their websites or even downloading their apps for security reasons, more will do same for taxation reasons and gradually services available to other nations just won't be available to Nigeria.

If you can recommend a taxation approach and penalty for not complying behind banning the services for the entire nation like FG did Twitter, pls explain.

asamwababy:


He is right.And its even faster than most availabe in UK.

And you could not be clever enough to name the ISP?

TheRareGem1:


You see that your comprehension us below per, or maybe you didn't read

"Below par" and not "below per", sister. I'm fucking arguing with kids who're barely out of secondary school or, perhaps, under-graduated from university. The question is how do you tax these tech giants?

The example you mentioned above is simply passing the cost on to the users of their services. That's not taxing the companies. You guys should stop this wilful idiocy. It's annoying

phineas:


You guys need to wake up and applaud any initiative that supports the growth of the country.They make a lot of money from Nigeria.A lot,if in doubt ask how much Linda makes from ads daily,and that's just a tip of the iceberg compared to Facebook,insta,Twitter etc.

Thanks to our population and china /asia not letting their people trade with such platforms,Nigeria contributes a significant amount in dollars to their revenue.Someone should Please bring the figures and rate in comparison to other countries and regions.

This is the right step from Nigeria.Tax any income they generate from Nigeria.Any money that goes out from Nigerian accounts to them as payment for services must be tracked and taxed,vat first then systems to collect other taxes e.g must be thought of creatively .Naija is doing that already.e.g operating liscence,registration etc

They can tax Linda because unlike the likes of Instagram, Tiktok, etc...she has a physical presence in Nigeria (not just virtual). Linda conducts direct business in Nigeria; hence, she can be taxed. Tell me, how do you get Twitter, facebook, IG and the rest to comply with your tax laws when they have no physical interest or assets in Nigeria?

asamwababy:


Please stop embarrassing yourself on a public forum.

They are not taking their business anywhere because all the other countries are already taxing them for digital products.

Your country has been sleeping all this while and just woke up.

This is what you get when you elect leaders that re not exposed.

The world has moved on since and your county is playing catch up.

If you hold a very strong position in Nigeria while I hold a strong position in Google or within WhatsApp. You tell me to pay Nigeria taxes and I say no, what would you do? Ban Nigerians from using Google and WhatsApp? Thats cool with me then, after all you and your country is insignificant to my global success. I'd worry about countries that I gain revenue from, not those that still struggle for internet access and struggle with affordable data.

Nigerian FG dont think about the costs involved in running these businesses on a global scale, suddenly just wants a slice of the pie.

Yahoo was was once a global giant and everyone in Nigeria then had free yahoo email addresses back then. Why didn't FG think of taxing yahoo because 200m Nigerians had free yahoo addresses? Same yahoo suffered a major breach that costs it billions and the firm wasn't able to recover. It ended up getting sold cheap in 2017 to Verizon at a giveaway price. From then till now, Yahoo still hasn't recovered from all the litigation and losses it has incurred. Why isn't FG thinking of taxing yahoo too, since some Nigerians still use yahoo for free in Nigeria? No they won't, they prefer to focus on the successful ones, not the ones on deficit.

So, who is publicly embarrassing himself between me and you?

I dont understand where the feeling of entitlement is coming from. Its almost like a case of someone offering you free meals and you're still asking for money to go and pick up the free meal where it was delivered. I'd just ignore you like Twitter ignored Nigeria. Period.

Nonsense

erico2k2:

ahahah U funny, Unlimited fiberoptic Internet provided by what company name it!

ipnx. Didn't we have this discussion two years ago or it was someone else?

shegzhkn:



Who is ur ISP, MainOne ??

BROADBASED Communications is what I use

radautoworks:
ipnx. Didn't we have this discussion two years ago or it was someone else?

Don't know why he's so fixated on the company. Won't a Google search answer his question. Seems like one of those that drag argue ment with no rationale reason.

TheRareGem1:


And what are you?

Come Nne

radautoworks:
ipnx. Didn't we have this discussion two years ago or it was someone else?

I think its with someone else, Im trying to see what one I can use anytime Im home so I can network myself 100%

TheRareGem1:



It' can't happen, and they are not doing Nigeria any favour, think about it, in twitter alone, Nigeria has at least 40million subscriber, Facebook has more than 50million and etc. Look at this massive presence we are talking about and our financial act has stated clearly that ;
The Finance Act 2019 empowers the Federal Government to collect 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. 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.”

Let Nigeria brag all it wants about how many Nigerian subscribers Twitter, Instagram, whatshap and Google has. When has the number of subscribers translated to the income they earn from each subscriber.
Nairaland have over 3million subscribers, how many of them has paid nairaland a dime before? Even you I bet can't say one time you ever paid to use whatshap, Google, Twitter and Instagram. So, aren't they doing you a favor and others use their services for free?

These companies aren't just built by one developer, some of them have to got through mergers and acquisitions that cost them billions of dollars sometimes, they absorb those costs to make these services available for all countries because of their stand sof freedom of expression. They maintain their businesses from ad revenue from richer nations, not somewhere like Nigeria that doesn't even contribute to their revenue but rather use their services for free.

Let Nigeria chase Google, Twitter, Facebook, Instagram and whashapp away with their crazy policies and see if that nation won't end up like North Korea that no other country in the world wants to have anything to do with.

MemoriesAndMe:

What business did Google advertise for them to pay taxes for? They had their website running from the country they are legally registered in, where they pay taxes in and citizens of other countries found their services valuable and started using their services too. How does that translate to paying taxes in every country your website is accessed from?

Nairaland is a Nigerian website accessed by Nigerians all around the world interested in its contents, does it mean Nairaland has to pay taxes in each of these countries?

Google, whatshap and other tech giants will simply not pay any taxes to Nigeria and the worst that can happen is them barring the country from accessing their services.

Someone said they have millions of subscribers from Nigeria, how has the number of subscribers translated to revenue for whatshap, Twitter, Instagram etc? When was the last time anyone in Nigeria ever paid to use whatshap? Arent most people only looking for free services? These firms maintain infrastructure for the free stuff and didn't advertise themselves for Nigerians to start trooping to use their services for free.

The issue of taxing the media giants has come up in many countries around the world, and its just difficult to establish a taxation structure for such firms compared to typical brick and mortar businesses.

Several firms already blocked Nigerians from accessing their websites or even downloading their apps for security reasons, more will do same for taxation reasons and gradually services available to other nations just won't be available to Nigeria.

If you can recommend a taxation approach and penalty for not complying behind banning the services for the entire nation like FG did Twitter, pls explain.

Very well said. You can't tax a company that's not registered in Nigeria. Even if they register here, they still won't be taxed. Taxation of multinationals is based on two principles. Residency or income activity. These companies are mainly resident in the US and their incomes are generated using the servers located in US, so they pay their taxes in the US. It's hard to make them pay Company Income Tax anywhere else.