The Federal Government of Nigeria plans to tax foreign digital service providers such as Netflix, Twitter, Facebook and so on.
The digital service providers earn revenue in Naira, the Federla Government are thereby making plans to get them pay tax to the Federal Inland Revenue Service (FIRS).
These digital service providers have generated a lot of income, especially during the lockdown due to the coronavirus pandemic.
Netflix, an online video streaming sites based in the United States announced the increase in the number of streams as a result of the pandemic and so is Jack Dorsey’s Twitter and Mark Zuckerberg’s Facebook.
The Nigerian Minister of Finance, Zainab Ahmed, is said to have issued the Companies income Tax (Significant Economic Presence) Order, 2020 as an amendment of the Finance Act 2019.
These foreign digital service providers which has been a part of Nigerian lives will have to pay tax with respect to certain services or digital transactions if it had a Significant Economic Presence in Nigeria which may allow the finance minister by order determine what constituted SEP in Nigeria.
Netflix in particular has been growing in Nigeria since Nollywood movies can be streamed on the site. Movies like Lion Heart, Merry Men 2, and so on have been popular on this digital platform in recent time.
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