₦airaland Forum

Google, Netflix, Facebook, and other foreign companies operating in Nigeria paid N3.85tn in taxes to the Federal Government in the first nine months of 2024, The PUNCH reports.

The amount represents an increase of 68.12 per cent from N2.29tn collected in the preceding period of 2023.

The figure includes the amount paid as Company Income Tax and Value Added Tax. This data was obtained from the National Bureau of Statistics on Tuesday.

The report showed that the amount increased by 26.21 per cent from N1.03tn collected in the first quarter to N1.30tn in the third quarter. N1.52tn was remitted in the second quarter.

An in-depth analysis of the reports revealed a significant improvement in tax remittance, with companies contributing N2.57tn in CIT for the period from January to September 2024. This marked a remarkable increase of 43.65 per cent compared to the N1.789tn collected during the same period in the previous year.

Additionally, VAT collections for the same period reached N1.28tn, reflecting an impressive surge of 157.03 per cent, up from N498.34bn in 2023. This data underscores a substantial growth in tax revenue, fuelled by improved collection drive.

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.

On a quarterly basis, Nigeria’s earnings from CIT increased by 42.49 per cent from N598.13bn in Q1 to N1.12tn in Q2 and N852.29bn in Q3.

VAT collection showed that Nigeria earned N435.73bn in Q1, N395.74 in Q2, and N448.85bn, marking an increase of N13.12bn or 3.01 per cent.

In 2020, the Federal Government began plans to collect tax 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, and 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.

These earnings are, however, expected to further increase when other social platforms start remitting their statutory obligation to the government.


Last week, the National Information Technology Development Agency indicated that TikTok and X (formerly Twitter) are yet to comply with tax filing requirements by Nigeria’s regulatory framework.

However, Google, LinkedIn, and Meta have met their tax compliance obligations as outlined in Part III, Sections 3–1, and Part II, Section 10 of the “Code of Practice for Interactive Computer Service Platforms and Internet Intermediaries (CoP for ICSP/II).”

Earlier this year, the former Accountant-General of the Federation, Oluwatoyin Madein, revealed that tax revenue is currently the nation’s highest source of income.

Madein said due to the substantial revenue generated from taxes, members of the federation account allocation committee eagerly anticipate the monthly figures from the Federal Inland Revenue Service, as these funds are crucial for distribution among the three tiers of government.

“Tax revenues today are the highest source of revenue accruing to the federation. Therefore, at the federation account allocation committee meetings, we eagerly await the numbers coming from the FIRS because the performance keeps on increasing and brings succour to all tiers of government,” she said.

Recall that the government gave the FIRS a tax revenue target of N19.4tn for 2024, remitting over ₦18.5tn.

Source: https://punchng.com/Google-Facebook-others-pay-N3.8tn-tax-to-FG-Report

What are the government using the tax money for?

Tax being looted

We only hear figures.

ToIu:
No you are wrong.

The news should read
Nigerians using Facebook AD, and Google Ad etc Pays FG 3.85Trillion

We pays the VAT, not Facebook.

For instance, only 2k Facebook Ad attracts over N100 VAT. Not to mention the millions of businesses using all the social media Paid Ads.

We are robbing small business to feed others, which is why we are where we are today as a country

You are quite right! The taxes all these social media platforms are paying the federal government are indirectly coming from Nigerians using the platforms/handles

Unfortunately, this current federal government keeps collecting taxes here and there, taxing everything taxable and daily putting burdens on Nigerians without using the taxes to improve the welfare of the masses.

So painful to know these monies will get looted 😭😭😭

That's huge

Uchefame:
What are the government using the tax money for?

Abia airport construction

ToIu:
No you are wrong.

The news should read
Nigerians using Facebook AD, and Google Ad etc Pays FG 3.85Trillion

We pays the VAT, not Facebook.

For instance, only 2k Facebook Ad attracts over N100 VAT. Not to mention the millions of businesses using all the social media Paid Ads.

We are robbing small business to feed others, which is why we are where we are today as a country

You obviously don’t understand how tax work. The post mentioned that they remitted VAT and Company Income Tax.

ToIu:
No you are wrong.

The news should read
Nigerians using Facebook AD, and Google Ad etc Pays FG 3.85Trillion

We pays the VAT, not Facebook.

For instance, only 2k Facebook Ad attracts over N100 VAT. Not to mention the millions of businesses using all the social media Paid Ads.

We are robbing small business to feed others, which is why we are where we are today as a country

Please clarify your definition of "Robery."

Are you saying only small businesses or individuals are subject to VAT?

The news report categorized revenue into corporate income tax (CIT) and VAT, indicating that CIT constitutes the larger portion of government revenue.

Does this also constitute "Robery"?

The federal govt won’t say that oh

Mofos without any tangible business will hail fg now

Not knowing it's Nigerians are paying this

In another news; Nigerians Paid N2.23trn Ransom To Kidnappers In 12 Months – NBS

Source: https://www.nairaland.com/8295639/nigerians-paid-n2.23trn-ransom-kidnappers

Kidnapping appears to be more lucrative than legal business.

Tobokongs:
That's huge



Abia airport construction

the very first bigotry in this thread.

Same question on my mind 🤔

Uchefame:
What are the government using the tax money for?

Good!

Is Nigerians using ads that paid not the company, at d end, it will be looted by the government

Naija which way

Yet accountability will be questionable

Wetin government use the money do? Abi them steal am?

Hadeylex:
You are quite right! The taxes all these social media platforms are paying the federal government are indirectly coming from Nigerians using the platforms/handles

Unfortunately, this current federal government keeps collecting taxes here and there, taxing everything taxable and daily putting burdens on Nigerians without using the taxes to improve the welfare of the masses.

Imf that's asking the hegoats to tax the people don't go about using the tax proceed to maintain their big belly.

One day na one day the people that these hegoats are cheating eyes will open and they will demand for their tax, and it is that thier useless big belle they will go for to collect back all the tax they paid to them.

Would be interested in the details if available. One way to know is when the companies file end of year financial reports, they would state what taxes they paid and to whom.

Hmmmm

And yet we are still borrowing. Someone should make it make sense to me

Uchefame:
What are the government using the tax money for?

No social benefits to Nigerians nothing. ..

All d revenue left and right

Yet d govt keep borrowing

Where the office they said Twitter must open in Nigeria

Na we day give APC free hand to do nonsense. Wetin them use this money for ? No infrastructure development , no proper health care , no provision of jobs. Just increased poverty , you tax and steal from outside , tax and steal from the inside. Na we give these people free hand I swear. Na just to catch all those people way day support APC, and APC stake holders, as them do Jesus , we do them like that. By the time they behead maybe one or 2 of them, and crucify the remainder , them go understand am Well. The fact we are divided , they use it to advantage. The strong reason why Igbos decided to be on their own. I don't see how people would suffer and still insist that everything is good. It's not. Na we give these people free hand.

Uchefame:
What are the government using the tax money for?

All will be stolen

That is why my data go so fast hmmmmm

loffyloffy:
Please clarify your definition of "Robery."

Are you saying only small businesses or individuals are subject to VAT?

The news report categorized revenue into corporate income tax (CIT) and VAT, indicating that CIT constitutes the larger portion of government revenue.

Does this also constitute "Robery"?

Nah hatred make dem dey Reason like that.

That's nice