Google, Netflix, Facebook and other foreign companies operating in Nigeria paid N2.55tn in taxes to the Federal Government in the first six months of 2024.
The amount represents an increase of 158.76 per cent from N985.27bn collected in 2023. The figure includes Company Income Tax and Value Added Tax, collated from data obtained from the National Bureau of Statistics.
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.
In 2020, the Federal Government had indicated plans to begin tax collection 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.
