FIRS to collect N5tn tax from Twitter, other social media platforms

Digital companies, Twitter, Facebook and other social media platforms will be taxed by the Federal Inland Revenue Service (FIRS) in 2022, as tax agency set up unit.

According to the executive chairman of FIRS, Mohammed Nami, the tech giants have been included in the country’s tax bracket, adding that it’s new international tax department has been charged with the tax collection.

The new development, which was made known on Wednesday, shows that the administration of President Muhammadu Buhari is going forward with its plan to tax the digital economy.

Recall that the administration had stated that the social media companies have significant economic presence in Nigeria, but not paying tax despite benefiting from the country’s large population, growing smartphone usage and internet penetration.

Read also: FIRS insists on VAT collection, moves to challenge court rulling

During his appearance before the House of Representatives Committee on Finance in Abuja, Nami said the 2022 projected revenue from FIRS rose by N5 trillion due to registration of Twitter and other social media platforms.

The total revenue target has been put at N10.1 trillion, with the Federal Government taking N2.053 trillion, while the state and local governments will share the rest.

Nami said, “On the issue of the digital economy, your suggestions are noted, we also have them as part of what we are doing because we already have a department called the international tax department that is handling those cases.”

He added that, “Twitter and others are already registering with us, so we are aware. So we expect that the impact of those registrations would be felt positively by FIRS and that is why the targets are going up.”

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