Foreign Tech Companies are now to pay Tax to the Nigerian Government.

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One of the recently amended bills is the Finance Act bill. Its states that: Foreign companies with a significant economic presence in Nigeria are now to pay tax. It is now known that companies do not have to be physically present in Nigeria for them to pay tax. As far as the country is concerned, Presence in the digital and tech space and access to the Nigerian market now qualifies a company to pay income tax to the government.

However, the points in the constitution states that:
The company gets paid for services rendered in Nigeria and to Nigerians.

The company derives a gross turnover or income of more than 25 million Naira or its equivalent in other currencies, in any fiscal year from its services.

The company streams or downloads services of digital content, including but not limited to movies, videos, music, applications, games and e-books to any person in Nigeria.

The company transmits data collected about Nigerian users, where such data has been generated from such users activities on the digital interface including website or mobile applications.

The company provides goods or services of any nature in Nigeria, directly or indirectly through a digital platform.

The company provides intermediation services through digital platforms, a website or any other online application that links suppliers and customers in Nigeria.

The company uses a Nigerian domain name (.ng), or registered the website address in Nigeria.

The company has a platform targeted at Nigerians and has reflected the price of its products and services in the Nigerian currency (Naira)

The company has provided billing and payment options in Nigerian currency

The company received payment from a Nigerian resident during the accounting year;

The company has a purposeful and sustained interaction with Nigerian residents and has customized its digital page or platform to target Nigerians;

The company furnished services of a technical, professional, management and consultancy nature including advertising

The company offers training to Nigerian residents for a fee

The company offered its products or services through satellites.

Therefore, Foreign Tech companies like Google, Facebook, Twitter, YouTube are now, under this law to pay income taxes to the Nigerian government as well since they offer streamed content and advertising services to Nigerians.

This amendment means that Foreign Tech spaces that have social media platforms operating in Nigeria, where messages and services are targeted at Nigerians, will now be expected to file annual returns generated in Nigeria to pay income tax to the Nigerian government.

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