The Federal Government of Nigeria plans to tax Netflix, Facebook, and other foreign digital services
The Federal Government of Nigeria has planned to tax foreign digital services providing services to citizens in the country and earning revenue in the Nigerian monetary unit.
Netflix, Facebook, Twitter, and other foreign digital service suppliers are among the services expected to pay tax under the business tax issued by Zainab Ahmed, the minister of finance, in the “Significant Economic Presence Order,” 2020; A modified act of the 2019 Finance Act.
Foreign digital services such as video or music streaming sites, download sites as well as social media platforms are also expected to pay the tax to the Federal Inland Revenue Service.
The aim of this act from the federal government of Nigeria is to put a tax on foreign corporations that have digital transactions in relation to their businesses once it has got anything to do with the major Nigerian Economy.
Other digital sites such as Alibaba and Amazon also get revenue from Nigerians by processing and sending knowledge gathered concerning users in Nigeria, provision of products or services directly, or through a digital space.
The act would apply to all corporations that generate a revenue of N25m or equal from the African countries in that particular very year.
The Significant Economic Presence order will give corporations overseas customized digital platforms to focus on Nigerians by stating the costs of its product or services in the Nigerian monetary unit to pay taxes.
From the Act, a foreign digital service that supplies services like, tech, coaching, advertising, or offer skilled personnel, skilled, management, or practice services shall have a Significant Economic Presence (SEP) in any year if it gets any payment from an individual living in Nigeria.
Those excluded from this act are payments created to workers outside the countries or teaching in an academic field.
The success of this is also been discussed by professionals on the modality if any of taxing these service providers.