Osinbajo Reveals FG Will Tax Profits Made by Global Tech, Digital Giants in Nigeria

Osinbajo Reveals FG Will Tax Profits Made by Global Tech, Digital Giants in Nigeria

  • Financial experts say the federal government is empowered through the Finance Act to widen the country's tax net
  • The government is making moves to collect taxes on the Nigerian income of global tech giants with a significant economic presence in the country
  • The tech giants will be taxed even if they have not established an office or permanent establishment in the country

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FCT, Abuja - 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 a significant economic presence here.

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, Adesina Adedayo who visited him at the Presidential Villa on Friday, June 25.

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VP Osinbajo says the Finance Act empowers the federal government to take such decisions. Photo credit: Sodiq Adelakun/AFP
Source: Getty Images

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Taking advantage of the Finance Act

A statement sent to Legit.ng by Osinbajo's spokesman, Laolu Akande, quoted the vice president as saying:

“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 which was also an attempt to bring more people into the tax net, including those who have foreign assets.”

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.

Professor 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.

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Meanwhile, President Muhammadu Buhari on Tuesday, July 22 inaugurated the national steering committee of the National Poverty Reduction with Growth Strategy chaired by Osinbajo.

The special adviser to the president on media and publicity, Femi Adesina, disclosed this in a statement seen by Legit.ng.

The president said the committee will be backed with a well-researched framework for implementation and funding.

In a related development, Governor Ifeanyi Okowa has stated that with more youth entrepreneurs, Nigeria will know peace.

The governor made the comment recently when he received the chairman and members of the House of Representatives committee on tertiary education and services led by Rt. Hon. Aminu Suleiman, at Government House, Asaba.

He said his administration has employed the tactics in keeping the peace in the south-south state.

Source: Legit.ng

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