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 a 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.

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“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 in the statement said 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.”

Osinbajo said the Federal Government recently took 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 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.”

source: https://newstrack.oak.tv/fg-will-tax-profits-made-by-global-tech-digital-giants-in-nigeria-osinbajo/