Taxes on profits made locally by global technology and digital firms not based in Nigeria, but with significant economic presence in the country, will be collected under the law.
During an interaction at the Presidential Villa with a delegation from the Chartered Institute of Taxation of Nigeria, headed by its president, Adesina Adedayo, Vice President Yemi Osinbajo made this statement.
In a statement yesterday, Osinbajo’s spokesman, Laolu Akande, stated: “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.
“We are responsible for collecting taxes from global tech giants with significant economic presence in Nigeria, even if they do not have an office or permanent establishment here and are not currently paying taxes here.
“Possession of significant economic presence, which may not be a Nigerian company, by a company other than a Nigerian entity, is encompassed by the provisions of Section 4 of the Finance Act 2019.
We have experienced severe economic downturns, which implies that we may not be able to collect taxes as aggressively as we would expect.
“I believe that the most important thing to do is to expand the tax net so that more people who are eligible can pay taxes.
Osinbajo said he was aware of initiatives like the Voluntary Assets and Income Declaration Scheme (VAIDS), which was an attempt to bring more people into the tax net, including those with foreign assets.